QUESTION 54 The UK cannot negotiate and enter into a bilateral trade agreement with the US until after it has officially left the EU. True False QUESTION 55 What reasons are the most justifiable to go abroad? The competition is doing it and you don't want to miss out. You want to change the industry landscape. You want to spread fixed costs across a broader customer base. You want to take advantage of cost savings, i.e. a less expensive labor pool. QUESTION 56 Match the definition to the term. Measures changes in the value of outstanding financial obligations incurred prior to a change in exchange rates but not due to be settled until after A the exchange rates change. - - - Transaction Exposure Translation Exposure Operating Exposure Accounting-derived changes in owner's equity to occur because of the need to translate foreign currency financial statements of foreign subsidiaries B. into a single reporting currency to prepare worldwide consolidated financial statements. Measures the change in the present value of the firm resulting from any change in future operating cash flows of the firm caused by an unexpected C. change in exchange rates. QUESTION 57 The most important decision to make when investing is Security selection Timing the market (buy low, sell high) Asset allocation Choosing the right financial planner