Lantana Co

question 1

Multiple Choice

Lantana Co. conducts pays for many imports denominated in Canadian dollars. It is a major exporter to France, and invoices the exports in euros. It also has much business in U.S. dollars. It has no other international business and does not hedge its transactions. It is about to obtain a small loan. It could reduce its exchange rate risk if its loan is denominated in:

• A) U.S. dollars.
• B) euros.
• C) Canadian dollars
• D) none of the above

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Definitions:

Target Market's Economy

The economic environment and conditions that influence the spending habits and purchasing power of a specific target market segment.

Viable Markets

Markets that have sufficient size, purchasing power, and accessibility to be profitable for selling a company's products or services.

Global Entry Strategy

The plan and methodology that a company uses to enter international markets, including exporting, licensing, franchising, or direct investment.

Pizza Hut Franchise

A business arrangement allowing individuals or entities to operate a Pizza Hut outlet, following the company's branding and operational guidelines.