Answer:
Transaction exposure is High if the two currencies are Negatively correlated.
Explanation:
The reason is that when the two amounts are the same with positive correlation, then the benefit arising from the dollars is equal to losses in chinese Yen. And the net effect will be no profit and no loss arising due to the strengthening of the other.
This means if their is no correlation then the two currencies might move adversely at the same time and the example can be taken by analyzing that Ethiopia is largely independent of making sales to America so the possibility exists that the company will either increase its worth or decrease its worth by the currency movements.
Contact force I believe is the answer
Answer:
command, and market economiesanswer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce.
Explanation:
A laissez-faire economy is one in which the government plays a very limited role. In a command economy, also known as a planned economy, the government largely determines what is produced and in what amounts. In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed.
