Why Do Exchange Rates Matter to Companies

question 74

Multiple Choice

Why do exchange rates matter to companies?

• A) Strong exchange rates could stimulate sales in foreign markets.
• B) Inflation could be caused by an exchange rate that is too strong.
• C) Poor exchange rates can be offset by government contribution.
• D) Exchange rates indicate the strength of the overall economy.
• E) Exchange rates affect the prices of goods and services.

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Definitions:

Situational Attribution

The process of attributing behavior to external factors or circumstances rather than to internal personality traits.

Foot-In-The-Door Phenomenon

A compliance tactic that involves getting a person to agree to a large request by first setting them up by having that person agree to a modest request.

Attitude

A mental inclination demonstrated through assessing a specific entity with a certain level of preference or aversion.

Fundamental Attribution Error

The habit of focusing too much on someone's personal attributes and overlooking the circumstances when assessing their behavior.