BUS 303 Final Exam Questions and Answers
with Verified Solutions | Latest Updated 2026
A company can reduce its risk -Credit risk assessment
from currency fluctuations that -Foreign receivables/credit insurance
occur during an international -invoicing
business transaction by: -payment timing
-cash in advance
A country's increasing -Less exports
currency value has the -Lose foreign market share
following effects on its -Lower foreign debt service costs
multinational companies: -Lower foreign input costs
A strong currency has the Strong dollar lowers inflation (low import
following effect on a country's prices) & dampens growth (low exports),
overall macro-economic therefore leads the Federal Gov. to keep
performance: interest rates low
Economists suspect that the -Greater use of "natural hedges" by
decreased impact of currency companies
depreciation on country -Increased imported content of exports
exports in recent years may due to participation in global value
be due to: chains
,Foreign subsidiaries of -Lowers price of exports/raises costs of
multinational companies must imports
expect that a weakening of -Raises domestic currency value of
local currencies in countries foreign sales
where they operate may -Raises cost of foreign acquisitions
eventually have the following -Raises domestic currency values of
effect on business conditions foreign income
in those countries: -Increases repayment cost of foreign
loans
The following macroeconomic -Imports decrease
factor has the effect of -Tourism decreases
depreciating (lowering) the -Exports increase
value of a country's currency. -Foreign earnings increase
-Inflation increases (import prices rise,
exports heat up)
-Productivity decreases (exports
compete on price)
-Interest rates increase (inflation)
-Export-led economic growth
What type of foreign currency Translation exposure
exposure arises for a company
that has a sizeable amount of
physical assets in plant and
equipment held in a particular
foreign currency?
, When a company shifts the Natural hedge
location of production to a
country where the company
has sizeable sales in order to
minimize the impact of
currency changes on its costs
of production it is called:
When ABInBev ended up When ABInBev bought SAB/Miller for
paying $13billion more for the $46B in 2016, it bought a forward
purchase of SABMiller than it contract for UK pounds at $1.5267 but the
had planned, it was because: pound fell to $1.245 costing ABInBev
$13B more than if it had not bought
protection at all.
When faced with a foreign Open account
buyer's uncertain
creditworthiness, a seller
should avoid this payment
method because it shifts most
risk to the seller.
What US law prohibits Foreign Corrupt Practices Act 1977
bribery?
What organization provides Transparency International
regular information and data
regarding the extent of
corruption and bribery in
countries around the world?
with Verified Solutions | Latest Updated 2026
A company can reduce its risk -Credit risk assessment
from currency fluctuations that -Foreign receivables/credit insurance
occur during an international -invoicing
business transaction by: -payment timing
-cash in advance
A country's increasing -Less exports
currency value has the -Lose foreign market share
following effects on its -Lower foreign debt service costs
multinational companies: -Lower foreign input costs
A strong currency has the Strong dollar lowers inflation (low import
following effect on a country's prices) & dampens growth (low exports),
overall macro-economic therefore leads the Federal Gov. to keep
performance: interest rates low
Economists suspect that the -Greater use of "natural hedges" by
decreased impact of currency companies
depreciation on country -Increased imported content of exports
exports in recent years may due to participation in global value
be due to: chains
,Foreign subsidiaries of -Lowers price of exports/raises costs of
multinational companies must imports
expect that a weakening of -Raises domestic currency value of
local currencies in countries foreign sales
where they operate may -Raises cost of foreign acquisitions
eventually have the following -Raises domestic currency values of
effect on business conditions foreign income
in those countries: -Increases repayment cost of foreign
loans
The following macroeconomic -Imports decrease
factor has the effect of -Tourism decreases
depreciating (lowering) the -Exports increase
value of a country's currency. -Foreign earnings increase
-Inflation increases (import prices rise,
exports heat up)
-Productivity decreases (exports
compete on price)
-Interest rates increase (inflation)
-Export-led economic growth
What type of foreign currency Translation exposure
exposure arises for a company
that has a sizeable amount of
physical assets in plant and
equipment held in a particular
foreign currency?
, When a company shifts the Natural hedge
location of production to a
country where the company
has sizeable sales in order to
minimize the impact of
currency changes on its costs
of production it is called:
When ABInBev ended up When ABInBev bought SAB/Miller for
paying $13billion more for the $46B in 2016, it bought a forward
purchase of SABMiller than it contract for UK pounds at $1.5267 but the
had planned, it was because: pound fell to $1.245 costing ABInBev
$13B more than if it had not bought
protection at all.
When faced with a foreign Open account
buyer's uncertain
creditworthiness, a seller
should avoid this payment
method because it shifts most
risk to the seller.
What US law prohibits Foreign Corrupt Practices Act 1977
bribery?
What organization provides Transparency International
regular information and data
regarding the extent of
corruption and bribery in
countries around the world?
