When Disequilibria in International Markets Occur, Management Can Take Advantage

question 45

Multiple Choice

When disequilibria in international markets occur, management can take advantage by:

• A) doing nothing if they are already diversified and able to realize beneficial portfolio effects.
• B) recognizing disequilibria faster than purely domestic competitors.
• C) shifting operational of financing activities to take advantage of the disequilibria.
• D) all of the above

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Definitions:

Risk Mitigation

Strategies and approaches used to reduce or control the probability and impact of negative events or risks on a project.

Risk Transfer

The strategy of passing financial risk from one party to another, often through the use of insurance or outsourced contracts.

Risk Breakdown Structure

A hierarchical decomposition of risks associated with a project, categorized systematically for analysis and management.

Risk Evaluation

The process of identifying potential risks in a project and assessing the likelihood and potential impact of those risks.