In the face of unpredictable movements in exchange rates, businesses should: Group of answer choices pursue strategies that will reduce their economic exposure pursue strategies that will decrease their strategic flexibility pursue strategies that will reduce their foreign market exposure sell off investments in foreign subsidiaries and consolidate domestic facilities

Question

Business

River Fowler

21 August, 04:34

In the face of unpredictable movements in exchange rates, businesses should: Group of answer choices pursue strategies that will reduce their economic exposure pursue strategies that will decrease their strategic flexibility pursue strategies that will reduce their foreign market exposure sell off investments in foreign subsidiaries and consolidate domestic facilities

+5

Answers (1)

Know the Answer?

Nana · Answer 1

pursue strategies that will reduce their foreign market exposure.

Explanation:

For companies that have foreign operations, there needs to be consideration for the exchange rates between the home country currency and the foreign currency.

When uncertainty occurs in the exchange rates it is best that the business reduce their foreign exposure. This can be done by focusing on local operations related to production and other cost drivers.

For example if the cost of producing goods abroad is too high a company can produce locally and move finished goods to foreign countries for sale.