To reduce economic exposure, should you REDUCE or INCREASE the amount of production in a location where the currency is appreciating?

Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: What does it mean by the monetary approach to currency depreciation when pertaining to international…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: Explain why, despite comparative cost disadvantages, countries might tend to protectionism for…

A: Protectionism : Protectionism refers to the deliberate practice of limiting imports or promoting…

Q: Analyse how protectionism can affect consumers in a country

A: Meaning of Trade: The term trade refers to the situation under which the products and goods are…

Q: Deregulation provides ……… opportunities for foreign investment because direct investment can take…

A: In an economy, deregulation refers to the situation when economic activities are not controlled by…

Q: Economic exposure can be managed by balancing the sensitivity of revenue and expenses to exchange…

A: Impact on an organization's cash flows due to currency fluctuations on account of change in the…

Q: How will exchange rates change in a country A where prices double year after year in comparison with…

A: The demand and supply for currency in the foreign exchange market determine the exchange rate of a…

Q: The euro area refers to: Select one: a. 15 countries; b. 27 countries; c. all EU countries +…

A: EFTA(European Free Trade Association) is a free trade area. In free trade area (first level of…

Q: what is the difference between international trade and international finance

A: Globalization and economic liberalization are significant milestones in the history of international…

Q: What challenges has both NAFTA and and the European Union faced?

A: NAFTA (North American Free Trade Agreement) was an agreement signed by Canada, Mexico, and the…

Q: Demand for a country’s exports leads to demand for its currency.

A: Value of currency fluctuate according to the trade pattern.

Q: Schrems II makes it easier for US companies to transfer data from the EU to the US. True False

A: The verdict of data privacy continued to prevent businesses in order to carry out basic transfers of…

Q: Define and explain the importance of the following concepts. Sterilized vs. Unsterilized Foreign…

A: The exchange rate is determined by the market forces of demand and supply. Government, however can…

Q: List two advantages Chile face by using foreign investment.

A: Chile is one of the emerging countries of the world. It is ranked as 17th largest FDI recipient of…

Q: what specific kinds of domestic institutions leads to protectionism and liberalization?

A: Trade liberalization  has always bene one of the controversial topics and it has been opposite to…

Q: what are three potential negative impacts that IMF may have on under developed islands?

A: There may be little the IMF can do to help developed islands. The new era presents the Caribbean…

Q: Is it legitimate to impose higher safety standards on imported goods that exist in the foreign…

A: Imposing higher safety standards on imported goods in favour of unsafe consumer products argument…

Q: Compare and contrast currency crises models

A: Ever since the 1990's there have been many instances of currency crises across the globe. This…

Q: dentify any two reasons that US dollars would be demanded in South Africa

A: International relation among the countries influences the economic, social, and political…

Q: After the Seattle 1999 World Trade Organisation Ministerial Conference there were many…

A: The International Monetary Fund (IMF) is an international organization of 190 nations. The primary…

Q: Contrast the pros and cons of protectionist policies

A: The policy that allows the government to promote domestic producers and boost goods and services…

Q: In an open economy, an increase in the tax rate will:

A: Open economy  Open economy refers to the economy of a nation which may engage in trading with the…

Q: how cashless economy make the international transaction more accessible

A: When transactions in the economy are not based upon money notes, coins, or other physical forms of…

Q: How does Exchange Rate Effects the economic and financial structure of a Firm within their work…

A: The exchange rate is the rate of conversion at which one currency is exchanged with another…

Q: When we adjust income per capita based on Purchasing Power Parity (PPP), differences in income per…

A: Purchasing power parity is a kind of economic theory where it compares different currencies of…

Q: Explain why coronavirus affects the balance of payments.

A: Balance of payments is a statement of all the financial transactions that occur between the…

Q: What does NAFTA stands for?

A: International trade agreements govern trade between two or more countries. An agreement may cover…

Q: What factors will shift the supply and demand for currency?

A: In the civilized economies, money became the predominant method of trade, replacing barter system as…

Q: Protectionism is most likely to be justified to

A: Introduction Protectionism. protectionism is used for the economical purpose in which any country…

Q: Would cappuccino by the cup or Prada handbags have wider price variation in a free trade area like…

A: Free trade area refers to the area where goods and services can move from one place to other easily…

Q: Companies that reduce their margins on export products in the face of appreciation of their home…

A: As a result of appreciation exports are going to decline. If they reduce their profit margin , they…

Q: If countries reduced trade barriers, would the international flows of money increase?

A: A trade restriction or trade barrier is an artificial constraint on the trade of commodities and…

Q: When a nation’s currency suddenly loses value, the ________ may step in to buy the afflicted…

A: International monetary fund is a financial institution and it has around 190 members. Its major…

Q: How does the Exchange Rate Effect the Stakeholders’ personal experiences in an industry within their…

A: Stakeholders: The person or party that is affected by the business decisions or it can affect the…

Q: What is the role of GATT in International Business?

A: International Trade is defined as the exchange of goods and services between two or more countries.…

Q: Should higher safety standards be imposed on imported goods that exists in country where the goods…

A: Safety standards are the guidelines and instructions for enhancing the quality and reducing the…

Q: Expatriates can easily migrate from one to another of GCC Member Country. a. True b. False

A: Question: Expatriates can easily migrate from one to another of GCC Member Country. a. True b. False…

Q: Evaluate which protectionist method is best for an economy.

A: A nation's trade protectionist policy is a calculated and deliberate effort to limit imports while…

Q: real depreciation in the value of a nation's currency should result in

A: Option (a). Depreciation of domestic currency makes exportable goods cheaper and foreign goods…

Q: Discuss examples of recent macropolitical risk events and the affect they may or may not have on a…

A: Macro political risks are those risks that impact companies all over the nation. These risks are…