Which of the Following Is Not One of the Major

question 26

Multiple Choice

Which of the following is not one of the major reasons for MNCs to forecast exchange rates?

• A) to decide in which foreign market to invest the excess cash.
• B) to decide where to borrow at the lowest cost.
• C) to determine whether to require the subsidiary to remit the funds or invest them locally.
• D) to speculate on the exchange rate movements.

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Definitions:

Total Product

The total output of goods and services produced by a firm during a specific period of time.

Implicit Costs

The opportunity costs that arise from using resources that could have been employed in an alternative capacity, but do not involve a direct monetary payment.

Entrepreneurial Talent

The skills, creativity, and initiative demonstrated by individuals in starting and managing new businesses, often driving innovation and economic growth.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.