Solved

EZ Lawn Currency Risk (Scenario)

Question 95

Multiple Choice

EZ Lawn Currency Risk (Scenario)
The EZ Lawn Corporation manufactures lawn equipment such as lawn mowers, blowers, and trimmers. The lawn equipment is assembled in the U.S. at a facility in Florida, but the firm outsources inputs from a number of countries, each with varying degrees of economic stability. Given the importance of the firm's sourcing activities, EZ Lawn managers are discussing methods that might reduce the currency risk faced by EZ Lawn.
-Which of the following would most likely minimize the currency risk of EZ Lawn?


A) concentrate all of the EZ Lawn outsourcing to one or two neighboring nations
B) relocate a team of EZ Lawn managers overseas to stay abreast of currency changes
C) list EZ Lawn stock on foreign stock exchanges to offset any currency losses
D) assign an EZ Lawn manager the task of monitoring currency fluctuations

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents