Which of the following poses a problem for international businesses in the long run?
A) Using exchange rate instruments like the forward market and swaps
B) Volatility of global exchange rate regime
C) Anti-inflationary monetary policies
D) Maintaining strategic flexibility by dispersing production to different locations
E) A policy of reduction in government spending

Question

Quizplus · Accepted Answer

The volatility of global exchange rate regime can pose a problem for international businesses in the long run as it makes it difficult to plan and budget for future investments and operations. Fluctuations in exchange rates can result in unexpected gains or losses, affecting profitability and competitiveness.

Which of the Following Poses a Problem for International Businesses