Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as

Which of the following events is least likely to take place under a fixed exchange rate system?

A) an increased volume of trade because of a decline in exchange rate volatility B) increased cross-border capital flows C) increase in cost of trade because of higher transaction costs D) increased cross-border labor flows in integrated economies

Moving decisions downward into functional areas economizes on information and is efficient because a functional department is by definition expert at a subset of the firm's activities

Indicate whether the statement is true or false