Asked by Zachary Robert on May 18, 2024
Verified
A U.S. company that wants to buy products from a foreign firm must generally buy that country's currency first.
Foreign Firm
A company that is incorporated under the laws of a country other than the one in which it does its main business.
- Understand the organization and purpose of foreign exchange markets.
Verified Answer
AD
Austin DeBerryMay 21, 2024
Final Answer :
True
Explanation :
Since the foreign firm likely invoices the products in their local currency, the U.S. company must convert their U.S. dollars into the foreign currency in order to pay for the products. This can be done through a bank or currency exchange service.
Learning Objectives
- Understand the organization and purpose of foreign exchange markets.
Related questions
Foreign Exchange Markets, Much Like Financial Markets, Are Located in ...
Which of the Following Is the Best Definition of Exchange ...
Which of the Following Is NOT a Factor That Should ...
If the Canadian Dollar Is Strengthening Against the British Pound ...
In Considering the Market for Yen and Dollars, When the ...