Non-Convertibility of Currency Implies That the Exporter May Not Be

question 32

Multiple Choice

Non-convertibility of currency implies that the exporter may not be paid in his or her home currency,and few exporters would desire payment in a currency that is not convertible.One solution to overcome this problem is to:

• A)cross-cultural trade.
• B)countenance offset trade.
• C)currency hedge.
• D)countertrade.

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Definitions:

Tulips

A type of flowering plant that is often cultivated for its bright, colorful blooms, and has historical significance in the economic history due to the "Tulip Mania."

Domestic Production

The total value of all goods and services produced within the borders of a country.

Exporting Industries

Industries that produce goods and services that are sold abroad.

Import-Competing Industries

Industries that produce goods and services that are also imported.