The Boomerang Effect Is Defined as

question 25

Multiple Choice

The boomerang effect is defined as

• A)the possibility that if the secret formula of Coca-Cola were leaked,that other firms would come up with similar products and hurt Coca-Cola's sales.
• B)the possibility that FDI in an undeveloped nation will lead to a group of workers who have enough money to afford the firm's products,leading to an increase of sales and increase of workers and so on.
• C)the possibility that FDI in an undeveloped nation will lead to a group of domestic workers no longer have enough money to afford the firm's products,leading to an decrease of sales.
• D)none of the options

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Definitions:

Singapore Dollars (SGD)

The official currency of Singapore, represented by the symbol S$.

Cash-flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a forecasted transaction.

Financial Statements

Financial statements are written records that convey the business activities and the financial performance of a company, including balance sheet, income statement, and cash flow statement.

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue.