Exporting is the most complicated mode of internationalizing due ...

[Charlie]

Exporting is the most complicated mode of internationalizing due to the issue of tariffs and nontariff barriers.
 
  Indicate whether the statement is true or false

Question 2

Describe the exchange rate arrangements used in the EU, Hong Kong, China, and the U.S.
 
  What will be an ideal response?

[ASDFGJLO]

Answer to Question 1

FALSE

Answer to Question 2

The EU uses an exchange arrangement with no separate legal tender. The currency of another country circulates as the sole legal tender or the member belongs to a monetary or currency union in which the members of the union share the same legal tender. Hong Kong uses a currency board arrangement. A currency board is an organization in a country that is generally separate from a country's central bank and which issues currency based on the amount of particular foreign currency that it has on deposit. The Chinese yuan fits in the soft peg category, more specifically in the stabilized arrangement, which means that the exchange rate remains within a margin of 2 percent against its anchor, which used to be the dollar and is now a basket of currency. The U.S. dollar independently floats, which means that the exchange rate is market determined, with any intervention aimed at moderating the rate of change and preventing undue fluctuations in the exchange rate, rather than at establishing a level for it.