Fluctuating Exchange Rates Can Alter a Multinational Firm's Profits and Losses.German

question 107

Multiple Choice

Fluctuating exchange rates can alter a multinational firm's profits and losses.German company Bayer produces products in Germany and sells them in the United States.If the dollar depreciates against the euro,then Bayer's sales in the United States should ________ because it will take ________ U.S.dollars to purchase the German-made products.

• A)rise; more
• B)rise; fewer
• C)fall; more
• D)fall; fewer

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Definitions:

Coffee

A beverage made by brewing the roasted seeds of the Coffea plant's berries, known as coffee beans.

Sleep

A natural state of rest during which an individual's consciousness is altered and the body can recover and repair.

Slope

A measure of the steepness or angle of a line on a graph, indicating the rate at which one variable changes with respect to another.

Curve

A graphical representation showing the relationship between two or more variables, often used in economics to depict supply and demand or other relationships.