Global IT Managers Must Be Sensitized to Cultural Differences Before

question 114

True/False

Global IT managers must be sensitized to cultural differences before they are sent abroad or brought into a corporation's home country.

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Definitions:

Exchange Rate Risk

The potential for investors or companies to experience losses due to fluctuations in the exchange rates between currencies.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account; used in capital budgeting to analyze the profitability of an investment or project.

Forward Exchange Rate

The exchange rate at which two parties agree to exchange currencies at a future date.

Forward Trade

A non-standardized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.