1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgen [1.6K]
3 years ago
15

A purely domestic firm that sources and sells only domestically, Multiple Choice should never hedge since this could actually in

crease its currency exposure. faces no exchange rate risk and should never hedge since this could actually increase its currency exposure. faces no exchange rate risk. faces exchange rate risk to the extent that it has international competitors in the domestic market.
Business
1 answer:
Oksana_A [137]3 years ago
5 0

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.

You might be interested in
What are the types of wholesaler?​
Gala2k [10]

Answer:

1. merchant

2. agent and brokers

Explanation:

Merchant wholesalers buy from manufacturers and sell to other businesses. Agents and brokers are essentially independents who provide buying and selling services.

4 0
3 years ago
An amendment to the texas constitution requires a balanced budget. This means that _____.
marissa [1.9K]

Any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget.

<h3>What does Texas Constitution require a balanced budget?</h3>
  • Texas always keeps its budget balanced because the State Constitution demands it. The Texas state and local sales taxes exceed 10% of the individual transaction price. The primary operating fund for Texas is the General Revenue Dedicated Fund.
  • A constitutional amendment known as the "balanced budget amendment" would restrict government spending to the amount of revenue it receives. Spending would need to be under control by the federal government.

An amendment to the texas constitution requires a balanced budget. This means that any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget.

According to a balanced budget, a government should not spend more than its income. Thus projected incomes and expenditures should be equal.

To learn more about balanced constitutional budget amendment, refer to:

brainly.com/question/8873582

#SPJ9

4 0
2 years ago
Theodosia was laid off from her last job. What should she put on her next application as her reason for leaving that job?
OleMash [197]

Answer:

O Downsizing

Explanation:

A lay off happens when the employer has closed down, has changed locations, or when there is not sufficient work for all the employees. A layoff is not caused by an employee's fault.

Downsizing refers to scaling down of operation. When a company downsizes, some of the employees will be laid off. Theodosia should mention she was laid off in her next application. The potential employer will realize that she wasn't at fault at her previous workplace.

8 0
3 years ago
When is a goodwill impairment loss recognized? a. Annually on a systematic and rational basis. b. Never When both the fair value
gulaghasi [49]

Answer:

The correct answer is letter "C": When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.

Explanation:

Impairment Loss is the decrease in an asset's net carrying value that exceeds the future undisclosed cash flow it should generate. The net carrying value is an asset's acquisition cost minus depreciation. Impairment occurs when a company sells or abandons an asset that is no longer beneficial.

Thus, <em>a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.</em>

7 0
3 years ago
The value-added is:
kondor19780726 [428]

Answer:

The correct answer is letter "C": sales minus costs of intermediate goods.

Explanation:

Value Added is used to describe the extra something a company does to a product that makes it worth more than the cost of its underlying parts. For economists, value-added is the <em>difference between the gross revenue for an industry</em> (sales) <em>and the sum of the labor, materials, and services </em>(intermediate goods) <em>purchased to produce the goods that generated the revenue.</em>

8 0
3 years ago
Other questions:
  • On January 1, Wei company begins the accounting period with a $40,000 credit balance in Allowance for Doubtful Accounts. On Febr
    8·1 answer
  • A small electronics company has begun production of a small line of high-quality, professional studio-model components targeted
    12·1 answer
  • Kiwis and strawberries are substitutes for consumers. An increase in the price of a kiwi coupled with an increase in the number
    8·1 answer
  • Craig's collected $15,000 from customers for games played in july. craig's sold bowling merchandise inventory from its pro shop
    14·1 answer
  • Which of the following statements accurately describes the economic policy of mercantilism?
    10·1 answer
  • An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender
    11·1 answer
  • Scott Company had sales of $12,050,000 and related cost of goods sold of $7,100,000 for the year ending December 31, 20Y8. Scott
    10·1 answer
  • Which of the following is a characteristic protected by anti-discrimination laws?
    8·2 answers
  • Which of the following statements is true of effective business communication? Group of answer choices The communication is most
    9·1 answer
  • Cory owns a custom purse-design business. He launched an advertising campaign featuring purses made of environmentally friendly
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!