If a Firm Does Not Have Foreign Subsidiaries, It Is

question 62

Multiple Choice

If a firm does not have foreign subsidiaries, it is not subject to ____.

• A) transaction exposure
• B) economic exposure
• C) A and B
• D) translation exposure

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Definitions:

Mere Exposure Effect

A mental effect in which individuals naturally favor things simply because they recognize them.

Novelty Wear-Out Effect

A phenomenon where the effectiveness or appeal of something new diminishes over time as it becomes familiar or overused.

Barrier-To-Entry Effect

Factors that prevent or hinder new competitors from easily entering an industry or area of business.

Preference Consistency Effect

A phenomenon where individuals show a tendency to remain consistent with their previously stated preferences and choices over time.