Why Must Development Programs, Like Overseas Assignments, Be Put on Hold

question 35

Multiple Choice

Why must development programs, like overseas assignments, be put on hold for managers during a merger?

• A) Costs are prohibitive during a merger so deferring overseas assignments is a cost-cutting measure.
• B) Managers may require additional training to manage the reactions of their employees.
• C) Managers cannot hide in another country to avoid being terminated with the merger.
• D) It is important that managers be available to work out incentive and reward schemes.

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Definitions:

Cash Flow Hedge

A financial strategy used to reduce the risk associated with fluctuations in cash flow due to changes in exchange rates, interest rates, or commodity prices.

Japanese Yen

The official currency of Japan, symbolized as ¥ and known for being one of the most traded currencies in the global foreign exchange market.

Forward Contract

A financial derivative that represents a customized contract between two parties to buy or sell an asset at a specified price on a future date, which is not traded on an exchange.

Cash Flow Hedge

A financial strategy to mitigate the risk of future cash flow fluctuations, typically related to variable interest rates, foreign exchange rates, or commodity prices.