Scenario: Excelsior's Limited
Excelsior's Limited, a maker of health and beauty aids, is expanding its presence in several countries around the world. Excelsior's president has been surprised at some of the responses the company has received from other countries.
-When Excelsior's Limited tried to convert its earnings from one country, the government stipulated that the company had to exchange its currency rate at a very unfavorable rate. This is an example of a(n) ________.

Question

Quizplus · Accepted Answer

This is an example of currency control, where the government sets regulations on currency exchange rates to control the flow of funds in and out of the country. The government stipulating an unfavorable exchange rate can make it more difficult for a company to conduct business in that country.

Scenario: Excelsior's Limited Excelsior's Limited, a Maker of Health and Beauty Aids, Is