To minimize currency risk, managers should distinguish economic exposure from transaction and translation exposures.
Indicate whether the statement is true or false
Question 2
Diana's, an Illinois-based cosmetics company, manufactures a wide range of natural cosmetics and skin-care products. The company has international divisions located in Singapore and London.
The top management at Diana's is currently considering making a change to the company's organizational structure. Which of the following, if true, best supports the argument that Diana's should change its organizational structure?
A) Employees at Diana's complain that they are too bogged down with administrative tasks to focus on creating new products and concepts.
B) Diana's exports its products to the emerging markets in Asia and Africa.
C) Employee attrition is low at Diana's.
D) The labor union consisting of Diana's full-time employees successfully negotiated a hike in their annual compensation with management a few months ago.
Question 3
Global functional structures are primarily used by small firms with highly centralized systems.
Indicate whether the statement is true or false
