If an Exporter Wants to Limit the Effect of Possible

question 186

Multiple Choice

If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as

• A) floating.
• B) speculating.
• C) hedging.
• D) appreciating.

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Definitions:

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.

Coal Miners

Individuals and companies engaged in the extraction of coal from the earth.

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Regulations and standards aimed at preserving and protecting the environment from harmful practices or pollutants, promoting sustainability.

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A natural fossil fuel that is used primarily for energy production and as a raw material in manufacturing.