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The impact of Currency Fluctuations on International Business

Quiz by Manie Spoelstra

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10 questions
Show answers
  • Q1
    How do currency fluctuations impact international business?
    They only affect tourism
    They only impact local economies
    They affect the competitiveness of exports and imports
    They have no impact on global trade
    30s
  • Q2
    How can currency fluctuations impact international investment?
    They can affect the value and returns of foreign investments
    They only impact domestic investments
    They only affect the cost of borrowing
    They have no impact on international investments
    30s
  • Q3
    How do currency fluctuations impact international tourism?
    They only affect local transportation costs
    They have no impact on international tourism
    They can affect the affordability and attractiveness of travel destinations
    They only impact visa requirements
    30s
  • Q4
    What is the main risk associated with currency fluctuations in international business?
    Exchange rate volatility
    Supply chain disruptions
    Technological advancements
    Political instability
    30s
  • Q5
    How can currency fluctuations impact a country's balance of trade?
    They only impact the stock market
    They can influence the trade deficit or surplus
    They have no impact on the balance of trade
    They only affect the domestic economy
    30s
  • Q6
    What is a currency peg in international business?
    An exchange rate fixed to another currency or a basket of currencies
    A financial institution that facilitates currency trading
    A prediction of future currency exchange rates
    The process of exchanging one currency for another
    30s
  • Q7
    How can currency fluctuations impact multinational corporations (MNCs)?
    They only impact local businesses
    They can affect revenue, profitability, and cash flows
    They only affect employee morale
    They have no impact on MNCs
    30s
  • Q8
    How can currency fluctuations impact a country's inflation rate?
    They only impact wages and salaries
    They can affect the prices of imported goods
    They only affect government spending
    They have no impact on inflation
    30s
  • Q9
    What is the impact of currency fluctuations on foreign direct investment (FDI)?
    They only impact government regulations
    They only affect local investments
    They can influence the attractiveness and returns of FDI
    They have no impact on FDI
    30s
  • Q10
    What is meant by currency devaluation?
    A sudden fluctuation in currency exchange rates
    An increase in the value of a currency by market forces
    A change in the interest rates set by central banks
    A deliberate decrease in the value of a currency by a country's government
    30s

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