Fidelity Manufacturing Is Considering Expanding Its Operations into the Philippines

question 38

Multiple Choice

Fidelity Manufacturing is considering expanding its operations into the Philippines.A manager at Fidelity has the task of predicting political risk in the Philippines.Which of the following approaches should the manager LEAST use to accomplish the task?

• A)analyzing the market share of competitors in the country
• B)analyzing the country's past political patterns and trends
• C)seeking and analyzing opinions of influential people in the country
• D)examining social and economic conditions within the country

---

Definitions:

Currency Swaps

Bilateral agreements to exchange periodic payments where the payments are based in two different currencies.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers indirectly.

LIBOR

London Interbank Offered Rate; the rate that large banks in London charge one another.

Floating-Rate Debt

A type of debt instrument with interest rates that adjust periodically based on a benchmark interest rate or index.