Managing expenses involves a two-step process of knowledge and action

Maintaining a compensating balance will:

A) increase the effective annual rate B) not change the effective annual rate C) decrease the effective annual rate D) only change the effective rate if payments occur more frequently than annually

Which of the following is a risk that firms must consider prior to expanding abroad?

A) The domestic consumers may prefer low-priced products. B) The market in the foreign country may be too similar to the domestic market. C) Consumers in the foreign country may be very particular about quality. D) The foreign country may have very low pollution control standards. E) Management may not understand the foreign country's business culture.