Two Major Issues Confronting International Marketers Result from Currency Movement

question 7

Multiple Choice

Two major issues confronting international marketers result from currency movement. The first of these is in which currency do we quote our prices? The
Second is:

• A) how much of the loss or gain (because of pass through) should be passed to consumers?
• B) how much should we invest in the local currency?
• C) how much should we invest in our own currency?
• D) what role should the central bank play in currency movement?
• E) should we trust international arbitrage as a means of settling currency value?

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Definitions:

Myelin

Fatty material produced by neuroglial cells; insulates axons and thus speeds conduction of action potentials.

Neuroglial Cells

Supportive cells in the nervous system that provide insulation, nutrients, and structural support for neurons, and participate in signal transmission.

Myelin

A fatty covering that insulates nerve fibers in the brain, spinal cord, and peripheral nerves, speeding the transmission of nerve impulses.

Action Potential

A rapid rise and subsequent fall in voltage or membrane potential across a cellular membrane, a process allowing neurons to transmit signals.