Which of the Following Is NOT True

question 8

Multiple Choice

Which of the following is NOT true?

• A) The international capital market expands the available set of lending opportunities.
• B) Investors reduce their overall risk by spreading their money over a greater number of debt and equity instruments.
• C) Investors increase risk by holding international securities whose prices move independently.
• D) Investing in international securities benefits investors because some economies are growing while others are in decline.

Understand the impact of locational determinants on business operations.

Recognize the role of supply chain dynamics and how sourcing strategies affect inventory levels.

Explain the grid technique and its purpose in determining facility locations.

Identify the characteristics and limitations of optimization models.

---

Definitions:

Price

The financial commitment expected, necessary, or made as payment for an article.

Miles

A unit of distance measuring 5280 feet or approximately 1.609 kilometers.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, opposite to normal goods.

Normal Good

A type of good for which demand increases when income increases, and falls when income decreases, but price remains constant.