Reducing a firm's economic exposure requires longer-term strategic choices about:

Question

Quizplus · Accepted Answer

Reducing a firm's economic exposure refers to minimizing risks associated with changes in exchange rates, interest rates, and commodity prices. One way to mitigate this risk is to source supplies from multiple locations to reduce dependency on a single supplier or country. Similarly, having production plants in different regions or countries can help minimize the impact of any adverse economic events affecting a particular region. Therefore, strategic choices related to the sources of supplies and the location of production plants are crucial in reducing a firm's economic exposure. Options A, B, and C are not directly related to economic exposure.

Reducing a Firm's Economic Exposure Requires Longer-Term Strategic Choices About