Scenario: Excelsior's Limited
Excelsior's Limited, a manufacturer of health and beauty aids, is expanding its presence in several countries around the world. Excelsior's president is surprised at some of the responses the company is receiving 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 at a very unfavorable rate.This is an example of a(n)________.

Question

Quizplus · Accepted Answer

This situation is an example of currency control, where a government sets regulations or restrictions on the exchange or use of foreign currency. The unfavorable exchange rate is likely a result of the government's attempt to control the outflow of currency from their country. Administrative delay refers to bureaucracy or red tape slowing down processes, subsidy is financial aid given by a government, and a tariff is a tax on imported or exported goods.

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