Describe the process of exchange control, and explain how it affects a country's ability to conduct global business.
What will be an ideal response?
Exchange control refers to the regulation of a country's currency exchange rate, the measure of how much one currency is worth in relation to another. When the dollar falls, it has a twofold effect on U.S. firms' ability to conduct global business. For firms that depend on imports of finished products, raw materials that they fabricate into other products, or services from other countries, the cost of doing business goes up dramatically. At the same time, buyers in other countries find the costs of U.S. goods and services much lower than they were before.
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Stabilizing speculation reinforces market forces by intensifying an appreciation or a depreciation in a currency's exchange value.
a. True b. False
You are teaching a class of new hires at your international accounting firm. Explain the audit risk model using a mathematical formula.AR = RMM × DRAR = Audit riskRMM = Risk of material misstatementDR = Detection risk
What will be an ideal response?
What are form reports? Explain the benefits of form reports
If a mature firm announces a new stock offering, the price of its stock will decline. To avoid this, the firm should _____.?
A. ?repurchase the existing stock B. ?finance only through debt C. ?maintain a reserve borrowing capacity D. ?convert all common stock into preferred stock E. maintain a minimum amount of floating stock