Briefly explain how changes in currency exchange rates can affect a multinational company's pricing strategies
What will be an ideal response?
Marketers have no control over how exchange rates fluctuate on the global capital market. Because fluctuations in currency exchange can have the effect of raising or lowering a product's price overnight, they can present great pricing opportunities and risks.
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A one-year zero-coupon bond yields 4.0%. The two- and three-year zero-coupon bonds yield 5.0% and 6.0% respectively. The one-year spot rate r(1) = 4%, the forward rate for a one-year loan beginning in one year is 6%, and the forward rate for a one-year loan beginning in two years is 8%. Which of the following rates is closest to the three-year spot rate?
A. 4.0% B. 6.0% C. 8.0%
The exact definition of public relations still perplexes many professionals in the field
Indicate whether the statement is true or false