Your Firm Is a U

question 25

Multiple Choice

Your firm is a U.S.-based exporter of bicycles.You have sold an order to a French firm for €1,000,000 worth of bicycles.Payment from the French firm (in euro) is due in three months.Detail a strategy using futures contracts that will hedge your exchange rate risk.Have an estimate of how many contracts of what type and how much (in $) your firm will have.

• A)Go short 12 six-month forward contracts; pay $1,290,000.
• B)Go short 16 six-month forward contracts.Pay $1,230,000.
• C)Go long 16 six-month forward contracts; raise $1,230,000.
• D)Go long 12 six-month forward contracts.Receive $1,230,000.

Understand the evolution of America's stance on civil rights and social issues.

Grasp the concept of Reaganomics and its implications for the American economy.

Critically assess the successes and failures of social campaigns initiated during the Reagan era.

Understanding the distinction between direct and indirect costs in HRM.

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Definitions:

ERG Theory

A refinement of Maslow’s hierarchy that includes only three needs areas: existence (mostly figure needs); relatedness (needs linked to relationships); and growth (internal esteem needs and self-actualization).

Existence

The state or fact of living, being, or having a presence.

Growth

An increase in some measured quantity, such as size, number, value, or strength.

Manifest Needs Theory

Developed by David McClelland to show that all people have needs that motivate them in life and on the job. These three needs include power needs, affiliation needs, and achievement needs.