With Respect to Exchange Rates and Competition, It Is Correct

question 237

Multiple Choice

With respect to exchange rates and competition, it is correct to say that

• A) companies that conduct international operations do not have to worry about the effect of exchange-rate fluctuations on competition because the accounting department does the conversions.
• B) as the value of a country's currency falls, its balance of trade becomes less favourable.
• C) as the value of a country's currency falls, there is an increased incentive for foreign companies to ship products into the domestic market.
• D) Canadian firms can deal with a stronger Canadian dollar by increasing the efficiency their operations.
• E) all of these are correct.

---

Definitions:

Humanistic Psychology

A historically significant perspective that emphasized human growth potential.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.

Change Blindness

A perceptual phenomenon where a person does not notice significant changes in the visual details of a scene.

Dual Processing

The principle that our mind operates on two levels simultaneously: fast, intuitive thinking, and slower, more deliberate thought.