Scenario: Trader's Paradise
Trader's Paradise is a global merchant that sells a variety of products. The company operates in 48 different countries (some developed, some developing) and some former communist countries. The company faces substantial risks given differing conditions in foreign exchange markets.
-When doing business with former communist countries, Trader's Paradise would insist on getting paid in hard currency; which means they want to get paid in ________.

Question

Quizplus · Accepted Answer

Trader's Paradise faces substantial risks in foreign exchange markets, especially when dealing with former communist countries. To mitigate these risks, Trader's Paradise would insist on getting paid in a convertible currency, which can be easily exchanged into other currencies and is not subject to drastic fluctuations in value. This reduces the risk of loss due to currency volatility and makes it easier for the company to conduct business transactions. Therefore, the best choice is D - a convertible currency.

Scenario: Trader's Paradise Trader's Paradise Is a Global Merchant That Sells a Variety