Consider the following objective function with prioritized goals: Min: R1(d1-) + R2(d1-)

This implies that goal 2 is of higher rank than goal 1.

Indicate whether the statement is true or false

FALSE

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Depreciation of the euro relative to the U.S. dollar will cause a U.S.-based multinational firm's reported earnings (from the consolidated income statement) to ____. If a firm desired to protect against this possibility, it could stabilize its reported earnings by ____ euros forward in the foreign exchange market.

a. be reduced; purchasing b. be reduced; selling c. increase; selling d. increase; purchasing

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Which of the following Acts is an example of extraterritoriality?

a. Trading with the Enemy Act b. Doctrine of Sovereign Compliance c. Maquiladoras d. Act of State Doctrine

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