Which of the Following Has Led to an Increase in Demand

question 48

Multiple Choice

Which of the following has led to an increase in demand for strategies to hedge corporate risk?

• A) fluctuations in interest rates
• B) fluctuations in exchange rates
• C) fluctuations in the price of raw materials
• D) all of the above

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Definitions:

Exports

Goods and services sold to other countries.

World Production

The total output of goods and services produced by all countries around the globe.

Autarky

A situation in which a country does not trade with other countries.

Comparative Advantage

The advantage conferred on an individual or country in producing a good or service if the opportunity cost of producing the good or service is lower for that individual or country than for other producers.