A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider?
A. Language variations
B. Currency fluctuations
C. Differences in laws
D. Opportunity costs
B. Currency fluctuations
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Foreign exchange contracts, such as futures, swaps, and options, are collectively known as:
a. derivatives. b. deposits. c. spot contracts. d. spreads.
The World Bank makes loans primarily to
A. developing nations. B. nations without national debt. C. nations without free markets, such as North Korea. D. highly developed nations.
Income distribution in the United States has become more equal since 1980
Indicate whether the statement is true or false
Which of the following will cause a decrease in producer surplus?
a. the imposition of a binding price ceiling in the market b. an increase in the number of buyers of the good c. income increases and buyers consider the good to be normal d. the price of a complement decreases