Question 3 3 pts Which of the following is NOT an international market friction? O tariffs O shipping costs immigration laws labor productivity Question 5 3 pts Which of the following is an example of political risk? O foreign government imposes new taxes on foreign subsidiary O economy in host country declines foreign employees demand higher wages consumers' income levels decrease, thus decreasing consumption Question 9 3 pts The major disadvantage of a floating rate currency system is changes in inflation in one country are not forced on another country. changes in unemployment in one country are not forced on another country. it introduces currency risk, that is, it makes it difficult to know how much a future cash flow in a foreign currency will be worth in the domestic currency it reduces currency risk, that is, it makes it easy to know how much a future cash flow in a foreign currency will be worth in the domestic currency Under the Bretton Woods system all currencies of member states were directly convertible into gold. all currencies of member states were directly convertible into silver. the international monetary system abandoned the gold standard altogether. the US dollar was convertible into gold and the currencies of the other member states were convertible into the US dollar