1. Recent global stock market behavior indicates that market returns tend to be most ____ when volatility is created, and the volatility subsequently threatens the benefits of international portfolio diversification.

a. unstable

b. stable

c. uncorrelated

d. correlated

2. which one of the following actions related to their economic exposure strategy is not a way MNCs often respond to exchange rate risk when they alter the marketing strategy?

a. new product introduction

b. shift the firms manufacturing base to another country

c. innovate with more advanced technology products

d. change the size of its product line.