Scenario - S & I Creations Sven and Ingrid Allgertson

question 11

Multiple Choice

Scenario - S & I Creations Sven and Ingrid Allgertson developed the idea for their thriving business while awaiting the birth of their first child, Olga.  Finding nowhere to purchase fine handmade baby clothing and other items, the couple decided to start their own business.  Neither Sven nor Ingrid imagined just how successful this endeavor would turn out to be for them. Their designer baby clothes and products were an instant hit in the world marketplace.  And even though the baby items are quite expensive to purchase, shoppers from around the world are only too happy to spend large sums of money on their beloved children. Originally S & I Creations only sold products within Sweden, but soon global demand necessitated the company offer its products in several other foreign markets.  Now the proud parents of baby Olga are also the proud owners of a $10 billion per year business.  Sven and Ingrid cannot wait to see what the future holds for their family and their business operations. S & I Creations has over ten thousand customers from London, England.  The currency of England is not valued the same as the currency of Sweden. Which one of the following would S & I Creations be most interested in when it comes to currency value?  

• A)The currency exchange rate
• B)The gold standard
• C)The Bretton Woods system
• D)The International Monetary System
• E)Foreign direct investment margin

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Definitions:

High Need for Achievement

A personal characteristic that denotes a strong desire to perform challenging tasks well and meet personal standards for excellence.

Moderately Difficult

Describes a task or challenge that requires substantial effort or skill but is not so hard that it becomes overwhelming or unachievable.

External Events

Occurrences outside an organization that might impact its operations, strategy, or performance, such as economic changes, natural disasters, or regulatory shifts.

McGregor's Theory Y

A management theory that suggests employees are inherently motivated and will fulfill their work and responsibilities without coercion if provided with the right conditions.