The 2015 Merger of Walgreen Boots Alliance, One of the World's

question 29

Multiple Choice

The 2015 merger of Walgreen Boots Alliance, one of the world's largest pharamaceutical purchasers, is not likely to

• A)reduce the significant risks of fluctuating exchange rates to its competitiveness in foreign markets.
• B)avoid the effects of fluctuations in exchange rates on the costs of manufacturing goods in a particular country.
• C)succeed when the currency of the country from which the goods are being exported grows weaker relative to the currencies of the countries that the goods are being exported to.
• D)see the advantages of manufacturing goods in a particular country erode when that country's currency grows stronger relative to the currencies of the countries where the output is being sold.
• E)come under pressure from lower-cost imports if local currency grows weaker in relation to the currencies of the countries where the imported goods are being made.

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Definitions:

Salvage Value

The approximate salvage worth of an asset at its lifespan's conclusion.

Freight Charges

Freight charges are the costs incurred by a company for transporting goods, merchandise, or commodities from one place to another.

Straight-Line Basis

The straight-line basis is a method of calculating depreciation and amortization, dividing the cost of an asset evenly over its useful life.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, determining the leftover value after depreciation is taken into account.