One of the Big Risks of Competing in Foreign Markets

question 31

Multiple Choice

One of the big risks of competing in foreign markets is:

• A) the extent to which the advantages of exporting goods from a particular country can be wiped out when fluctuating exchange rates result in that country's currency growing much weaker relative to the currencies of the countries to which the goods are being exported.
• B) whether the economies of foreign countries will continue to grow at double-digit rates.
• C) the fact that some countries have lower wage rates than others.
• D) the potential for local government officials to reduce tariffs on the imports of its goods into their country.
• E) the extent to which the advantages of manufacturing goods in a particular country can be wiped out when fluctuating exchange rates result in that country's currency growing stronger relative to the currencies of the countries where the output is being sold.

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Definitions:

Energized

Denotes when an electrical device is supplied with power, indicating its active status and readiness to perform its function.

Time Delay

A pause or latency period introduced in a process or communication, commonly used in electronics and programming to manage timing.

Energized

A state in which an electrical component or circuit has power supplied to it and is operational.