In the face of unpredictable movements in exchange rates, businesses should
A) pursue strategies that will reduce their economic exposure.
B) pursue strategies that will decrease their strategic flexibility.
C) pursue strategies that will reduce their foreign market exposure.
D) sell off investments in foreign subsidiaries and consolidate domestic facilities.

Question

Quizplus · Accepted Answer

It makes sense for businesses to pursue strategies that will increase their strategic flexibility in the face of unpredictable exchange rate movements-that is, to pursue strategies that reduce the economic exposure of the firm.

In the Face of Unpredictable Movements in Exchange Rates, Businesses