Which Type of Institution Is in a Unique Position to Bear

question 73

Multiple Choice

Which type of institution is in a unique position to bear exchange rate risk by creating a natural hedge?

• A) National banks
• B) Multinational corporations
• C) Large corporations
• D) International banks

Recognize the economic theories explaining international trade, including the Heckscher-Ohlin model.

Understand how labor productivity and wages influence international trade.

Analyze the benefits of specialization and trade for countries with different production possibilities.

Identify misconceptions related to international trade and its impacts on exporting and importing countries.

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Definitions:

Substitute for Cash

Refers to alternative forms of payment that are not physical cash, such as checks, credit cards, or electronic transfers.

Coffee Shop

A type of retail establishment that primarily serves coffee and other beverages, along with snacks or light meals.

Assignment

A transfer of rights, property, or responsibilities from one party to another.

Assignee

A person, company, or entity to whom rights or interests have been transferred by another, known as the assignor.