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When a firm makes a choice about foreign operations, it is a trade-off between local responsiveness and global efficiency.Explain.
Discount Rate
The interest rate used to determine the present value of future cash flows.
Call Option
A financial contract that gives the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.
Put Option
A financial agreement granting the holder the option, but no requirement, to sell a certain quantity of an underlying asset at a predetermined price during a defined period.
Forward Contract
An individualized agreement for the purchase or sale of an asset at an agreed-upon price on a specific future date between two parties.
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