Which of the Following Poses a Problem for International Businesses

question 117

Multiple Choice

Which of the following poses a problem for international businesses in the long run?

• A)Using exchange rate instruments like the forward market and swaps
• B)Volatility of the global exchange rate regime
• C)Anti-inflationary monetary policies
• D)Maintaining strategic flexibility by dispersing production to different locations
• E)A policy of reduction in government spending

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Definitions:

Marginal Cost

The expense for creating a supplementary unit of a product or service.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the financial market.

Needed Financing

The amount of money required to fund a project, venture, or cover operational expenses not met by current revenues.

Process Innovation

The development and use of new or improved production or distribution methods.