____ is the impact of currency exchange rates changes on the reported financial statements of a company.
A. Economic exposure
B. Financial exposure
C. Translation exposure
D. Transaction exposure
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FDI occurs when a ____
A. Domestic firm imports products and services from another country
B. Firm ships its product from one country to another
C. Firm invests in the stock of another company
D. Firm invests directly in facilities to produce and/or market a product in a foreign country
In 1991, Argentina, Brazil, Paraguay and Uruguay implemented an agreement known as ____
A. NAFTA
B. MERCOSUR
C. APEC
D. FTAA
A political benefit of economic integration is that ____
A. It enables participants to achieve gains from the free flow of trade
B. It enables participants to achieve gains from the free flow of investment
C. It allow countries to specialize in the production of goods and services that they can produce most efficiently
D. Linking neighboring economies creates incentives for cooperation between the neighboring states and reduces the potential for violent conflict
Trade diversion occurs when ____
A. Low-cost producers within the free trade area replace high-cost domestic producers
B. Lower cost suppliers replace higher cost external suppliers within the free trade area
C. Higher cost external suppliers replace lower cost domestic producers within the free trade area
D. Higher cost suppliers replace lower cost external suppliers within the free trade area