A Foreign Operation Which Is Financially or Operationally Interdependent with the Canadian

question 4

Multiple Choice

A foreign operation which is financially or operationally interdependent with the Canadian parent company such that the exposure to exchange rate changes is similar to the exposure that would exist had the transactions of the foreign operation been undertaken directly by the Canadian parent is called a

• A)Interdependent foreign operation
• B)Integrated foreign operation
• C)Self-sustaining foreign operation
• D)Has no special name

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Definitions:

Short-Run Aggregate-Supply

A variation in phrasing to describe the responsiveness of the quantity of goods and services produced by an economy to a change in price level in the short term.

Output

The total amount of goods and services produced by an economic system.

Price Level

An index of the average prices of goods and services in an economy over a given period of time, indicating the cost of living and inflation.

Price Level

A measure of the average price of goods and services in an economy at a given time, often used to discuss inflation or deflation.