In a two-country,two-currency international operation,an affiliate in country "A" needing more of its own currency can
A)borrow locally.
B)export to an affiliate and receive funds from that affiliate.
C)obtain funds from a central pool, which in turn might borrow any of several currencies and exchange them for currency "A."
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options listed can be effective ways for an affiliate in country "A" to obtain more of its own currency in a two-country, two-currency international operation.

Borrowing locally can be a straightforward way to obtain the needed currency, although interest rates and other conditions may vary depending on the prevailing economic conditions in country "A".

Exporting goods or services to an affiliate in exchange for funds can work well in situations where there is a good match between the affiliate's needs and what the exporting affiliate can provide.

Using a central pool to obtain funds can offer more flexibility in terms of which currencies are exchanged, but may come with additional costs or risks associated with currency exchange.

Ultimately, the choice of strategy will depend on a range of factors such as the financial health of the affiliate, the business goals of the international operation, and prevailing economic conditions in both countries.

In a Two-Country,two-Currency International Operation,an Affiliate in Country "A" Needing