Refer to the Scenario Below to Answer the Following Questions

question 31

Multiple Choice

Refer to the scenario below to answer the following questions.
International Entrepreneurs (Scenario)
Jennifer and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.
-By establishing their company's operations in Canada, Jennifer and James hoped that an existing regional trade agreement would help them to avoid tariffs in __________.

• A) Japan and Germany
• B) Europe
• C) South America
• D) Mexico and the United States
• E) Southeast Asia

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Definitions:

Fixed Exchange Rate

A country's currency exchange rate regime under which the government or central bank ties the official exchange rate to another country's currency or to the price of gold.

Covariance

A measure of how two stocks move together, indicating the degree to which their returns are related.

Swiss Stock Exchange

A major stock exchange located in Zurich, known for its strict privacy laws and strong financial services sector.

U.K. Bills

Short-term debt securities issued by the United Kingdom government, used to fund its operations and manage its money supply.