Which of the Following Poses a Problem for International Businesses

question 33

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 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:

Comprehensive Income

The total change in equity for a reporting period that comes from transactions, other events, and circumstances from sources not directly related to investments by or distributions to equity shareholders.

Unrealized Changes

Refers to changes in the value of assets or liabilities that have occurred but have not been realized through a transaction.

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares.

Comprehensive Income

This is a measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.