Corporations Should Understand the Necessity for Tracking New Developments and Obtaining

question 39

Multiple Choice

Corporations should understand the necessity for tracking new developments and obtaining continuous updates because:

• A) in the political arena, politicians do not like surprises.
• B) any changes in the business environment, whether domestic or foreign, may have serious repercussions on the marketing activities of a firm.
• C) it may have to hire more nationalists.
• D) taxes will increase.

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Definitions:

Long-Run Exchange Rate Risk

The potential for financial loss over time due to fluctuations in foreign exchange rates affecting international investments and transactions.

International Firm

A company that conducts its operations and business activities in more than one country.

Economic Conditions

The state of the economy at a given time, influenced by factors such as GDP growth rates, unemployment levels, and inflation rates.

Short-Run Exposure

The risk faced by companies due to fluctuations in exchange rates that can affect their transactions and finances in the near term.