Rhonda tells Kevin that he will receive 0.86 euro for every U.S. dollar he wants to convert. Rhonda is referring to Multiple Choice o a forward exchange. o a balance-of-trade equilibrium. o arbitration. o countertrade. o the exchange rate. A time draft is a negotiable instrument, which means that it Multiple Choice o cannot be transferred. o is also known as a bill of lading. o is generally not preferred in international transactions. o has no value given the deferred nature of the document. o can be sold to an investor. According to the Fisher effect, if the "real" rate of interest in a country is 3 percent and the expected annual inflation is 8 percent, what would the "nominal" interest rate be? Multiple Choice 24 percent 5.5 percent lo o o o C 2.25 percent 11 percent 9 percent Porter's PaleAle is considering small-scale entry into the European market. What would be a disadvantage of small-scale entry for this firm? Multiple Choice 1 0 lack of flexibility associated with strategic commitments 0 increase in economic exposure due to minimal time spent in evaluating a foreign market 0 limited availability of resources for use in other markets 0 difficulty of building market share and capturing first-mover advantages 0 possibility of escalating commitment leading to major financial losses