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3 years ago

What type of exposure relates to exposure to potential financial loss as a result of trading in another currency?

Business

1 answer:

andrezito [222]3 years ago

3 0

Answer:

The correct answer is foreign exchange risk.

Explanation:

Currency risk is the positive or negative difference that arises from changes in the exchange rate over time. A company that carries out operations in another currency is exposed to exchange rate movements, therefore it must seek to compensate them strategically.

Whenever a company carries out a transaction in foreign currency, whether it is for the importation of inputs or products, or the export of goods, with a waiting period between collection and payment, there is a risk of loss or gain that may affect to your finances and your profitability.

As the exchange market is volatile, a company that does not anticipate changes in the exchange rate may run the risk of incurring losses that affect its financial planning and cash flows.

Therefore, it is advisable to be prudent in your purchases of raw materials or finished products and when contracting financing in other denominations.

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According to the growth accounting studies, if you lived in a country where illiteracy was high and 40% of the children left sch

My name is Ann [436]

Answer:

b. There would be both a human and economic loss.

Explanation:

In the case when the illiteracy was more and 40% of the children left the school so early that they didnt complete their education so here the result should be that there should be 2 losses i.e. human and economic loss as the children does not have any kind of knowledge so they would not get the job so easily

Therefore the option b is correct

8 0

3 years ago

TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically.

vichka [17]

Answer:

The right choice is Option c (110.0%).

Explanation:

⇒ $Effective \ rate \ of \ protection = tariff \ rate \ on \ imported \ finished \ good + price \ of \ Component\times \frac{(tariff \ on \ imported \ good- tariff \ on \ imported \ component)}{(Price \ of \ finished \ good - Price \ of \ components)}$

On estimating the values, we get

⇒ = $30 \ percent + (80 \ percent\times 500)\times \frac{(30 \ percent - 10 \ percent)}{500-80 \ percent\times 500}$

⇒ = $110 \ percent$

Note: percent = %

3 0

3 years ago

The market demand for wheat is Q = 100 − 2p + 1pb + 2Y . If the price of wheat, p, is $2, and the price of barley, pb, is $3, an

stira [4]

Answer:

0.95

Explanation:

Given that,

Market demand for wheat: Q = 100 − 2p + 1pb + 2Y

price of wheat, p = $2

price of barley, pb = $3

Income, Y = $1000

Q = 100 − 2p + 1pb + 2Y

= 100 - (2 × 2) + (1 × 3) + (2 × 1,000)

= 100 - 4 + 3 + 2,000

= 2,099

Differentiating Q with respect to Y,

dQ/dY = 2

Income elasticity of wheat:

= (dQ/dY) × (Y ÷ Q)

= 2 × (1,000 ÷ 2,099)

= 0.95

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3 years ago

One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four ba

Montano1993 [528]

Answer:

A) the affordable method,

In Fine Fettle's management reviews what it is trying to achieve with promotion and sets the budget based on anticipated expenses.

B) the percentage-of-sales method,

In Fine Fettle's management reviews its forecasted sales volume for the turmeric bar and sets is promotional budget at $150,000.

C) the competitive-parity method,

In Fine Fettle looks at its competitors and finds that their average promotional spending ranges from $100,000 to $250,000. Therefore, the promotional budget is set at $200,000.

D) the objective-and-task method.

In Fine Fettle's management reviews its revenues and expenses and allocates promotional spending based on what management believes it has to spend

Explanation:

A) is deciding the promotion expense considering how much can afford based on the expenses budget

B) determninate the promotion based on a percentage of expected sales

C) the company will look at their competitors promotion expense and try to keep up with that level to avoid being left behind

D) management will determinate on a monthly/ weekly basis where and how much to promote

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4 years ago

Which industry most spurred economic growth and innovation in related industries?

Tatiana [17]

The actual correct answer is A railroads

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3 years ago

Read 2 more answers