The Extent to Which a Foreign Company Changes Dollar Prices

question 18

True/False

The extent to which a foreign company changes dollar prices of its products in the U.S.market as a result of exchange rate fluctuations is called exchange rate pass-through.

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Definitions:

Cycle Inventory

The portion of inventory that is replenished regularly based on the demand and supply cycle of the business.

Cycle Inventory

The quantity of inventory available to meet normal demand between shipments in a replenishment cycle.

Supply Chain

A network of organizations, people, activities, information, and resources involved in producing and delivering a product or service from supplier to customer.

Occupancy Cost

The total expense incurred for occupying a physical space, including rent, utilities, taxes, and maintenance.