Which One of the Following Is an Example of Long-Run

question 95

Multiple Choice

Which one of the following is an example of long-run exposure to exchange rate risk? Ignore all fees and transaction costs.

• A)A U.S.firm owns land in Mexico valued at three million pesos.That value has remained constant in Mexican pesos for the past year.However, the firm's financial statement reflects a 3 percent decrease in the value of that land for last year.
• B)A U.S.firm sells $250,000 worth of goods to Peru.However, when the payment for those goods arrives and the U.S.firm exchanges the foreign currency, it receives only $248,700.
• C)A U.S.firm purchases $120,000 worth of goods from Canada.However, by the time the goods arrive and the invoice is payable, the cost of those goods has increased to $120,400.
• D)A few years ago, a U.S.firm built a factory in Asia to take advantage of the lower labor costs.Today, the Asian labor costs have increased such that the Asian factory no longer provides a cost advantage over a U.S.factory.
• E)A U.S.traveler withdrew an extra $2,000 in cash from her savings account to take with her as emergency funds when she traveled to Mexico.Before leaving on her trip, she exchanged this money into Mexican pesos.She never used any of this money during her vacation, so exchanged all of it back into U.S.dollars on her return and received $1,960.

Discuss the effects of globalization on labor relations and how different systems are adapting or resisting convergence.

Analyze the relationship between legal frameworks for labor and the reality of the workers' experiences in countries like Mexico.

Understand industry-specific labor relations practices, including sector bargaining and its evolution.

Clarify the concept of enterprise unions and their significance in the Japanese labor relations system.

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Definitions:

Good Neighbor Policy

A foreign policy adopted by the United States during the presidency of Franklin D. Roosevelt towards Latin America, aiming at non-intervention and non-interference in the domestic affairs of Latin American countries.

Canadian Support

Refers to the assistance or backing Canada provides, potentially in contexts such as international relations, economics, or social issues.

Normandy Invasion

The Allied Forces' military campaign initiated on June 6, 1944 (D-Day), aimed at liberating Nazi-occupied France during World War II.

D-Day

The Allied invasion of Normandy, France, on June 6, 1944, during World War II, marking a pivotal phase in the liberation of Western Europe from Nazi control.