Sycamore (A U

question 22

Multiple Choice

Sycamore (a U.S. firm) has no subsidiaries and presently has sales to Mexican customers amounting to MXP98 million, while its peso-denominated expenses amount to MXP41 million. If it shifts its material orders from its Mexican suppliers to U.S. suppliers, it could reduce peso-denominated expenses by MXP12 million and increase dollar-denominated expenses by $800,000. This strategy would ____ the Sycamore's exposure to changes in the peso's movements against the U.S. dollar. Regardless of whether the firm shifts expenses, it is likely to perform better when the peso is valued ____ relative to the dollar.

• A) reduce; high
• B) reduce; low
• C) increase; low
• D) increase; high

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Definitions:

Emotion Labor

The process of managing and modifying one's emotional expressions as part of fulfilling the emotional requirements of a job.

Feeling Rules

Norms that dictate which emotions are appropriate for particular roles in a social context.

Emotion Labor

The process of managing feelings and expressions to fulfill the emotional requirements of a job.

Surface Acting

An emotional labor strategy where individuals feign or suppress genuine feelings to meet certain job or social expectations.