Define a currency exchange rate and discuss its importance to global companies.
What will be an ideal response?
Fluctuations in exchange rates among the world's currencies are of critical importance in global marketing. A currency exchange rate is the price of one country's currency expressed in terms of another country's currency, such as the U.S. dollar expressed in Japanese yen, euros, or Swiss francs. Failure to consider exchange rates when pricing products for global markets can have dire consequences if a company sets the prices for its products without regard for how they would convert into foreign currencies. This could lead to high prices, lost sales, and forgone profits made by global companies. When foreign currencies can buy more U.S. dollars, for example, U.S. products are less expensive for the foreign customer. Severe and protracted fluctuations in a country's currency can affect trade as well.
You might also like to view...
Increased usage of micro-marketing means:
A) an increased emphasis on mass advertising B) companies focus more dollars with online advertising C) advertising agencies are used less by companies D) marketing programs focus more on individuals and micro-segments
With an enterprise system, updates of employee/payroll master data is performed by:
a. various departments b. employees c. computer d. HR department
In a 2011 survey by the Ethics Resource Center, ________
A) only two percent said CEOs were "very trustworthy" B) about two thirds said wrongdoing was not widespread in industry C) one-third of U.S. employees said their own managers "didn't exercise ethical behavior" D) about half said CEOs deserve what others might call "exorbitant" compensation
If the risk-free rate of return increases, required returns on all other securities should increase as well
Indicate whether the statement is true or false.