Answer:
faces exchange rate risk to the extent that it has international competitors in the domestic market.
Explanation:
Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.
So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.
For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.
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Answer:
A debit to the Finished Goods Inventory account and a credit to the Work in Process account for the final department in the series of process
Explanation:
In the case when the process related to the production is finished so the completed goods and accumulated profits could be transferred
So, the following should be the journal entry
Finished goods inventory XXXXX
To Work in Process Inventory - Final dept XXXXX
(Being the production process is completed recorded)
Here the finished goods is debited as it increased the assets and credited the work in process as it decreased the assets
Answer:
Policy impact will be positive
Explanation:
When investors pull out their funds from Asian, it will amount to scarcity of funds for developmental purposes. The contrary is the case when such funds are plunged into the US market. Its impact to the economy include:
1. Create more opportunity for development
2. Reduces the interest rate of lending in the society
3. Exchange rate value will decrease just because more of these funds will be used for business transactions
4. The prices of goods will be adjusted to balance the different caused by inflation
