The Possibility of Experiencing a Drop in Revenue or an Increase

question 56

Multiple Choice

The possibility of experiencing a drop in revenue or an increase in cost in an international transaction due to a change in foreign exchange rates is called

• A) foreign exchange risk.
• B) political risk.
• C) translation exposure.
• D) hedging risk.

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Definitions:

Principle of Rights Theory

A framework in ethical theory that posits certain rights are fundamental and must be respected and protected in moral and legal decisions.

Industry Code of Ethics

A set of principles and guidelines designed to help professionals in a specific industry maintain integrity and ethical standards in their work.

National Association of Manufacturers

A leading industrial trade association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states.

Workplace Diversity

Refers to an inclusive work environment that embraces individual differences among employees, such as race, gender, age, religion, and other attributes.