Explain the importance of managing short-term foreign exchange risks as a requirement for decision making using global information systems (GIS)
A mix of free-floating (no government intervention), managed-floating, and fixed-exchange rates characterizes today's international monetary system. Currency rates can change daily, so management must minimize the impact of currency fluctuations in countries where the parent company and the subsidiaries are located. To manage foreign exchange risks, many companies have developed expert systems and decision support systems.
You might also like to view...
Rowan Company has four different categories of inventory. The quantity, cost, and market value for each of the inventory categories are as follows:ItemQuantityCostPer UnitMarket Value Per Unit1220$ 4.40 $ 4.60 2130$6.20 $ 6.00 3100$10.00 $9.25 425$20.50 $25.00 The company carries inventory at lower-of-cost-or-market applied to the entire stock of inventory in the aggregate. How would the implementation of the lower-of-cost-or-market rule impact the elements of the company's financial statements?
A. Decrease total assets and stockholders' equity by $101.00. B. Increase total assets and stockholders' equity by $55.50. C. Have no effect on total assets or stockholders' equity. D. Decrease total assets and stockholders' equity by $79.00.
If a buyer wrongfully refuses to accept goods, the seller can bring an action to recover the damages sustained
Indicate whether the statement is true or false
The difference between the interest rate that a bank charges on its loans and the interest rate that the banks pay their depositors is known as the
A) percent spread. B) arbitrage opportunity. C) bid-ask spread. D) covered interest arbitrage opportunity.
For an act to be established as a tort of injurious falsehood, the false statements of fact must be communicated by the defendant to a third person
Indicate whether the statement is true or false