Choose the Word or Phrase in [ ] Which Will

question 56

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement.
-For a U.S resident,the best way to minimize exchange rate risk when investing in foreign stocks is to buy [them directly on the foreign exchanges | American Depositary Receipts].

---

Definitions:

Foreign Producers

Foreign producers are companies or individuals who produce goods or services outside the domestic market.

Tariff

Government-imposed duties on imported or, less commonly, exported goods, often established to protect domestic industries and to generate revenue.

Quota

A limit set by a government on the quantity of a particular product that can be imported or exported within a given timeframe, used for trade regulation.

Policy Action

A deliberate action taken by a government or other organization to influence economic, social, or environmental outcomes.