The Benefit to Forecasting Exchange Rates

question 32

Multiple Choice

The benefit to forecasting exchange rates

• A)are greatest during periods of fixed exchange rates.
• B)are nonexistent now that the euro and dollar are the biggest game in town.
• C)accrue to, and are a vital concern for, MNCs formulating international sourcing, production, financing and marketing strategies.
• D)all of the above

---

Definitions:

Clownfish

Brightly colored fish known for their symbiotic relationship with sea anemones, inhabiting the warm waters of the Pacific and Indian Oceans.

Catastrophic

Involving or causing sudden great damage or suffering, typically on a large scale or involving a natural disaster.

Drought

Drought is a prolonged period of abnormally low rainfall, leading to a shortage of water that adversely affects crops, animals, and human populations.

Earthquakes

Natural seismic events resulting from the sudden release of energy in the Earth's crust, leading to ground shaking and sometimes causing significant damage and loss of life.