If a company from Country A decides to sell merchandise to a company from Country B, then the company from Country A ________.
A) will denominate the sale in its own currency since it is too hard to convert foreign currency
B) will denominate the sale in the currency of the buyer since it is too hard for them to convert foreign currency
C) can denominate the sale in either currency and use the foreign-exchange market to convert currency
D) can use the OTC market to convert receipts in the future and the exchange markets to convert receipts in the spot market
Question 2
Firms are more likely to pursue public-private ventures when a country does not allow wholly-owned foreign operations.
Indicate whether the statement is true or false
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