1. You have observed that the British pound has appreciated by 10% against the US dollar and the euro has also appreciated by 10% against the US dollar. Which of the following is true about the exchange rate between the British pound and the euro?

a. There is not enough information to determine the change in exchange rates

b. The British pound has appreictaed agasint the Euro

c. The British pound has depreciated agasit the Euro

d. British pound/ Euro exchange rate has not changed

2. A form of MNC that exposes the firm to the least amount of political risk, and is therefore the preferred arrangement by both business and foreign governments, is called

an exporter.

a licensing agreement.

a joint venture.

a fully owned foreign subsidiary.