​A Weak Home Currency May Not Be a Perfect Solution

question 18

Multiple Choice

​A weak home currency may not be a perfect solution to correct a balance-of-trade deficit because:

• A) ​it reduces the prices of imports paid by local companies.
• B) ​it increases the prices of exports by local companies.
• C) ​it prevents international trade transactions from being prearranged.
• D) ​foreign companies may reduce the prices of their products to stay competitive.

---

Definitions:

French Organizations

are entities or groups operating in France, often characterized by specific cultural and regulatory frameworks unique to the French context.

Decision-Making Process

A series of steps that an individual or group takes to identify and evaluate options to make a choice.

Political Model

A framework describing the power dynamics, decision-making processes, and conflict resolutions within organizations, often highlighting competition among different interests.

Influence Methods

Techniques or strategies used to sway or change others' opinions, behaviors, or decisions.