Question

In international operations, the economic environment represents all of the following factors except:

a.
resource and product markets.
b.
laws and regulations.
c.
infrastructure.
d.
exchange rates.
e.
inflation.

Answer 1

In international operations, inflation is not considered as part of the economic environment, which typically encompasses resource and product markets, laws and regulations, infrastructure, and exchange rates.

Step-by-step explanation:

In international operations, all of the following factors represent the economic environment except inflation. The economic environment generally includes factors such as resource and product markets, laws and regulations, infrastructure, and exchange rates.

Exchange rates in particular have a significant impact on international trade because they affect import and export prices, potentially disturbing trade flows. When trade constitutes a substantial portion of a nation's economic activity, governments may opt to fix exchange rates to reduce the disruption of trade flows.