Operating Exposure Measures

question 12

Multiple Choice

Operating exposure measures

• A)the extent to which the foreign currency value of the firm's assets is affected by unanticipated changes in exchange rates.
• B)the extent to which the firm's operating cash flows will be affected by unexpected changes in exchange rates.
• C)the affect of changes in exchange rates will have on the consolidated financial reports of a MNC.
• D)the affect of unanticipated changes in exchange rates on the dollar value of contractual obligations denominated in a foreign currency.

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Definitions:

Role Playing

The act of adopting roles and acting them out in a social setting to explore different aspects of the self or to practice behaviors.

Cognitive Dissonance

A psychological phenomenon where there is discomfort or distress from holding two conflicting beliefs, attitudes, or values simultaneously.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing situational explanations.

Central Route Persuasion

A technique for convincing others that requires thoroughly understanding the message's content, resulting in enduring changes in attitudes.