The Local Currency Should Be Used for Performance Evaluation Purposes

question 40

Multiple Choice

The local currency should be used for performance evaluation purposes if

• A) the MNE leaves considerable autonomy to the foreign operation.
• B) sales are made in the foreign currency.
• C) the foreign currency is relatively stable.
• D) the local manager is given authority and responsibility to hedge foreign exchange differences.

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Definitions:

Social Security Benefits

Government program providing financial assistance to people with inadequate or no income, especially the elderly, disabled, and survivors.

Federal Government

A system of government where powers and responsibilities are divided between a national government and smaller administrative units, often including states or provinces.

Welfare

Governmental support aimed at ensuring the basic well-being of citizens, including provisions for health, education, and financial security during unemployment, sickness, or disability.

Conservatives

A political ideology favoring traditional values, limited government, and resistance to change.