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.

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Definitions:

Fund Balance

The difference between the assets and liabilities in a governmental fund, representing the net assets available for spending.

Statement of Activities

A financial report mostly used by non-profit organizations, displaying revenues, expenses, and changes in net assets for a specific period.