When Contemplating Sourcing Products Internationally,which of the Following Would NOT

question 55

Multiple Choice

When contemplating sourcing products internationally,which of the following would NOT be an additional costs associated with global sourcing?

• A)foreign currency fluctuations
• B)tariffs
• C)lesser lead times
• D)larger inventory carrying costs
• E)increased transportation costs

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Definitions:

Fisher Formula

An equation used in economics and finance that describes the relationship between nominal interest rates, real interest rates, and the inflation rate.

Real Rate

is the interest rate adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.

Interest Rate Risk

The potential for investment value fluctuations due to changes in the prevailing interest rates.

Maturity

The specified time at which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.