US Based Majestic Co

question 9

Multiple Choice

U.S. based Majestic Co. sells products to U.S. consumers and purchases all of materials from U.S. suppliers. Its main competitor is located in Belgium. Majestic Co. is subject to:

• A) economic exposure.
• B) translation exposure.
• C) transaction exposure.
• D) no exposure to exchange rate fluctuations.

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Definitions:

Sustenance

The provision of essentials needed for growth, maintenance, and support, often relating to nourishment or support of life and business activities.

Preferences

Individual or collective tastes or choices regarding products, services, or experiences, influenced by factors such as culture, personality, and socio-economic status.

Lackluster Sales

Sales that do not meet expectations or show little to no growth, often reflecting low consumer interest or demand.

Google Glass

A wearable technology with an optical head-mounted display designed by Google to provide a hands-free smartphone-like experience, where users can access information, take photos, and navigate using voice commands.