Answer to Question 1
D
A good marketing communications manager ensures that the message delivered in a website is appropriate, consistent, meets visitor expectations, and provides a positive message for the firm.
Answer to Question 2
International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or hedging against inflation. By increasing inventories before an imminent devaluation of a currency, instead of holding cash, the corporation may reduce its exposure to devaluation losses. Similarly, in the case of high inflation, large inventories can provide an important inflation hedge. In such circumstances, the international inventory manager must balance the cost of maintaining high levels of inventories with the benefits accruing to the firm from hedging against inflation or devaluation. Many countries, for example, charge a tax on stored goods. If the increase in tax payments outweighs the hedging benefits to the corporation, it would be unwise to increase inventories before devaluation occurs. Only by recognizing the trade-offs, which may result in less-than-optimal inventory policies, can the corporation maximize the overall benefit.
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