Use the Following to Answer Questions

question 186

Multiple Choice

Use the following to answer questions .
Exhibit: A Fixed Exchange Rate
-(Exhibit: A Fixed Exchange Rate) Suppose the exchange rate between the dollar and the British pound is fixed at £0.3 per dollar. Now suppose U.S. residents choose to purchase more British goods and services. What happens in the foreign exchange market?

• A) The demand curve for dollars increases, and the equilibrium exchange rate for the dollar (in terms of pounds) rises.
• B) The supply curve for dollars increases, and the equilibrium exchange rate for the dollar (in terms of pounds) falls.
• C) The demand curve for dollars decreases, and the equilibrium exchange rate for the dollar (in terms of pounds) falls.
• D) The supply curve for dollars decreases, and the equilibrium exchange rate for the dollar (in terms of pounds) rises.

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Definitions:

Strategic Marketing Decision

A choice made in marketing that is intended to contribute to long-term business success, often involving product development, market selection, and positioning.

STP Analysis

Segmentation, Targeting, and Positioning analysis is a marketing strategy that divides a broad market into distinct groups to tailor marketing efforts effectively.

Marketing Mix

The mix of elements a company can manage to encourage consumers to buy its products, which encompasses product, price, location, and marketing.

BCG Matrix

A strategic business tool used to evaluate the relative performance of different business units or products based on market growth rate and market share.