Question 5 1 pts Suppose that General Electric (GE) is selling power generators in Mexico as well as in Germany. The dollar-euro exchange rate and the dollar-peso exchange rate are less likely to comove together. Reduced sales in Germany due to an unfavorable change in the dollar-euro rate can be compensated by increased sales in Mexico due to a favorable change in the dollar-peso rate. As a result, GE's overall cash flows will be much more stable than would be the case if GE sold only in one foreign market, either Mexico or Germany. The strategy described above to reduce GE's operating exposure to the exchange rate effects is an example of diversification of the market. selecting low-cost production sites. R&D investment. flexible sourcing policy