If the expected future exchange rate falls, the supply of U.S. dollars and the exchange rate O A. decreases; appreciates B. does not change; does not change O C. increases; appreciates O D. increases; depreciates E. decreases; depreciates

Another name for the equilibrium exchange rate reported in the currency markets is the spot quote break even point forward quote hurdle rate

If Italian demand for Canadian lumber decreases, the supply of Canadian dollars to the foreign-exchange market will and the demand for euros will therefore O A. remain the same; remain the same O B. increase; decrease O C. increase; remain the same O D. decrease; increase O E. decrease; decrease

Exchange rates are an important factor when doing business internationally. Please discuss:  a. Potential mechanisms through which exchange rates affect revenues of multinational enterprises (MNEs) doing foreign direct investment (FDI) in a given foeign countryn (include atleast 3 mechanisms ). b. What stratergies can MNEs employ to hedge against the risks of stemming from foreign exchange (include atleast two potential stratergies).