If the Domestic Currency Is Devalued and Both Export and Import

question 14

Multiple Choice

If the domestic currency is devalued and both export and import contracts are written in the domestic currency,then the trade balance will:

• A) Increase
• B) Decrease
• C) Stay the same
• D) Uncertain

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Definitions:

High-power-distance Cultures

Societal or organizational cultures that tolerate a larger degree of inequality in the distribution of power and authority.

Monochronic Cultures

Cultures that value doing one task at a time, emphasizing schedules, punctuality, and a linear approach to organizing time.

Polychronic Cultures

Societies that value multitasking and the simultaneous handling of engagements over a focus on punctuality and schedules.

Cultural Intelligence

The capability to relate and work effectively across cultures, understanding and respecting cultural differences.