The purchase of goods, services, or assets denominated in a foreign currency most likely leads to ________.
A) exchange rate risk
B) translation exposure
C) transaction exposure
D) currency conversion risk
Question 2
Rubbermaid ended a joint venture in Europe when the partner firm refused to reinvest its profits into the development of new products. What was the source of this problem?
A) incompatibility among managers
B) inadequate access to information
C) conflicts over earnings distribution
D) loss of autonomy within the organization