Consider a U

question 91

Multiple Choice

Consider a U.S.MNC who owns a foreign asset.If the foreign currency value of the asset is inversely related to changes in the dollar-foreign currency exchange rate,

• A)the company has a built-in hedge.
• B)the dollar value variability that is independent of exchange rate movements.
• C)the company has a built-in hedge and the dollar value variability that is independent of exchange rate movements.
• D)none of the options

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Definitions:

Skilled Labors

Workers with specialized training, expertise, and experience that enable them to perform complex tasks.

Compensating Differential

The additional amount of income that an employee requires to accept a job that entails less desirable aspects, such as longer hours or higher risks.

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Unskilled Labor

Labor that requires no specialized skills, education, or training for its performance.