Which of the Following Buys Products in Foreign Markets and Then

question 37

Multiple Choice

Which of the following buys products in foreign markets and then sells them for resale in its home country?

• A) Importer
• B) Exporter
• C) Multinational firm
• D) International firm
• E) Direct foreign investor

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Definitions:

Treasury Bonds

Long-term, interest-bearing securities issued by the government that are considered a safe investment.

Relative Value Strategy

An investment strategy that seeks to identify and exploit differences in the price or rate of securities, often aiming to profit from discrepancies in relative valuation rather than absolute price movements.

On-The-Run Bonds

The most recent issue of a government bond, usually more liquid and yielding slightly less interest compared to older ('off-the-run') bonds.

Nearly Identical Duration

A characteristic of two or more financial instruments whose cash-flows occur over a similar time frame, making their sensitivity to interest rate changes similar.