Exchange rate changes have no impact on the control systems of international businesses.Group of answer choicesTrueFalse
Question
Exchange rate changes have no impact on the control systems of international businesses.
Group of answer choices
True
False
Solution
The statement "Exchange rate changes have no impact on the control systems of international businesses" is False.
Explanation:
- Exchange Rate Impact: Exchange rates directly affect the financial performance of international businesses since they influence import/export costs, pricing strategies, and overall profitability in different markets.
- Control Systems: The control systems of international businesses need to adapt to changes in exchange rates to manage risk and optimize financial performance effectively. This may involve hedging strategies, financial reporting adjustments, and strategic decision-making.
- Conclusion: Hence, exchange rate fluctuations significantly impact how international businesses operate and control their processes.
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