Suppose a U

question 78

Multiple Choice

Suppose a U.S.firm builds a factory in China, staffs it with Chinese workers, uses materials supplied by Chinese companies, and finances the entire operation with a loan from a Chinese bank located in the same town as the factory.This firm is most likely trying to greatly reduce, or eliminate, which one of the following?

• A)Interest rate disparities
• B)Short-run exposure to exchange rate risk
• C)Long-run exposure to exchange rate risk
• D)Political risk associated with the foreign operations
• E)Translation exposure to exchange rate risk

---

Definitions:

Leptin-deficient

Refers to a condition or state where there is a lack of leptin, a hormone that regulates energy balance by inhibiting hunger.

Metabolism

The set of life-sustaining chemical reactions in organisms for converting food to energy, building proteins, and eliminating waste products.

Predisposed

Having a tendency or inclination to something in advance, often referring to genetic or environmental factors leading to certain diseases or behaviors.

Calories

Units of energy used to measure the amount of energy food provides to the body.