As a result of globalization, international businesses can avoid the h

QUESTION

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

Indicate whether the statement is true or false.

ANSWER

FALSE
Cross-border transactions also require that money be converted from the firm’s home currency into a foreign currency and vice versa. Because currency exchange rates vary in response to changing economic conditions, managers in an international business must develop policies for dealing with exchange rate movements.