Exchange Rates

question 210

Multiple Choice

Exchange rates

• A)are always fixed
• B)fluctuate to equate the quantity of foreign exchange demanded with the quantity supplied
• C)fluctuate to equate imports and exports
• D)fluctuate to equate interest rates in various countries
• E)fluctuate according to agreements between the governments of various countries

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Definitions:

Liability of Foreignness

The inherent disadvantages that foreign firms experience in host countries due to their non-native status.

Licensing Agreements

Contracts in which one party (the licensor) permits another party (the licensee) to use rights to intellectual property, technology, or product lines.

Intellectual Property

Legal rights that result from intellectual activity in industrial, scientific, literary, and artistic fields, granting the creator exclusive rights to their work.

Licensing

Permission to use another company’s trademarks, patents, copyrights, or expertise.