15. Global companies that deal with the political and financial risks of conducting business in a particular foreign location face which of the following type of risk? a. Country risk b. Principal risk c. Interest rate risk d. Commodity price risk
15. Global companies that deal with the political and financial risks of conducting business in a particular foreign location face which of the following type of risk?
a. Country risk
b. Principal risk
c. Interest rate risk
d. Commodity price risk
16 The benefits of a just-in-time system for raw material usually includes
a. Elimination of non-value adding operations
b. Increase in the number of suppliers, thereby ensuring competitive bidding
c. Maximization of the standard delivery quantity, thereby lessening the paperwork for each delivery
d. Decrease in the number of deliveries required to maintain production
17. A city regulation that freezes apartment rent prices is most likely to cause
a. The demand curve for apartment rentals to fall
b. The supply curve for apartment rentals to rise
c. The quantity demanded of apartment rentals to exceed the quantity supplied
d. The quantity supplied of apartment rentals to exceed the quantity demanded
18. Which of the following is not likely to cause a rightward shift (increase) in the aggregate economy demand curve?
a. An increase in wealth
b. An increase in the level of interest rates
c. An increase in government spending
d. An increase in the general level of confidence about the economy
19. Assume a company uses the US dollar as its functional currency for preparing financial statements. The company earned a profit of $100,000 Euros from sales in the EU in 2019 and 2020. From 2019 to 2020 the Euro has weakened against the US dollar. This means, all other things equal, that
a. The company reports higher profits from its EU sales in 2020 than in 2019
b. The company reports lower profits from its EU sales in 2020 than in 2019
c. The company may have higher or lower profits in 2020 compared to 2019.
d. None of the above
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