Scenario - The Rochester Corporation
The Rochester Corporation is a multinational import-export firm with headquarters in the New York,USA.It currently has thirteen offices located on foreign soil and plans to open seven more by the end of the year.Rochester is quite proud of the fact that it reached over four billion dollars in revenue last year.The officers of the corporation are expecting to net over six billion per year with the projected expansion.
The Rochester Corporation considers it is a veteran when it comes to dealing with foreign governments and nations.The company maintains strict guidelines for employees and will only hire those who have expatriate experience of at least three years.The owners of Rochester attribute the company's continued success to the experience and knowledge of its employees.
-In dealing with such a varied number of customers from virtually all major points in the world,the Rochester Corporation is subjected to many risks.Which one of the following would not be considered an economic risk Rochester potentially faces in its global dealings?
A) Lack of consumer interest in the company's products
B) The devaluation of foreign currency
C) Confiscation of a company shipping vessel by pirates
D) Currency conversion restrictions
E) Potential for hyper-inflation to occur
Correct Answer:
Verified
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