Which One of These Is a Suggested Means of Reducing

question 30

Multiple Choice

Which one of these is a suggested means of reducing long-run exposure to exchange rate risk?

• A)Compiling financial statements only in foreign currency terms
• B)Using foreign resources to produce products sold in that foreign region
• C)Borrowing domestic currency,exchanging it for foreign currency,and investing it in foreign investments
• D)Ensuring any foreign operation requires significant parent company involvement
• E)Using current spot rates to fund long-term assets

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Definitions:

Professional Project Managers

Individuals certified and skilled in the planning, execution, and supervision of projects, ensuring they meet specified goals and constraints.

Commodity

A fundamental item utilized in trade that is exchangeable with other items of identical nature.

Rough Order Magnitude (ROM) Estimate

An early, approximate evaluation of the potential costs associated with a project, used for preliminary budgeting and planning purposes.

Ballpark Estimate

An approximate calculation or judgment of the value, number, quantity, or extent of something, intended to provide a rough understanding rather than precise accuracy.