A US Firm Sells Merchandise Today to a British Company for for £150,000

question 20

Multiple Choice

A U.S. firm sells merchandise today to a British company for £150,000. The current exchange rate is $1.55/£, the account is payable in three months, and the firm chooses to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. If the exchange rate changes to $1.52/£ the U.S. firm will realize a ________ of ________.

• A) loss; $4,500
• B) gain; $4,500
• C) loss; £4,500
• D) gain; £4,500

Grasp the effects of European wars on the colonial economies and societies.

Acknowledge the role of education, family structures, and public rituals in shaping colonial identities and societies.

Understand the strengths and weaknesses of comparative reasoning.

Identify the five criteria for a successful comparative inference (testability, comprehensiveness, productivity, simplicity, familiarity).

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Definitions:

Secret Arms Sale

The covert selling and distribution of military weapons and equipment, often to countries or groups without the approval or acknowledgment of the public or certain governing bodies.

Contras in Nicaragua

Nicaraguan rebel groups that opposed the Sandinista government in the 1980s, receiving support from the United States government.

Foreign Affairs

Government policies and activities related to interactions with other countries, including diplomacy, trade agreements, and conflict resolution.

Iran-Contra

A political scandal in the United States during the Reagan Administration involving the secret sale of arms to Iran and the illicit diversion of the proceeds to fund Contra rebel groups in Nicaragua.