Assume That the Exchange Rate Between the Dollar and the Euro

question 34

Multiple Choice

Assume that the exchange rate between the dollar and the euro is €0.6 = $1. Suppose the exchange rate changes to €0.50 = $1. Because of the change:

• A)Australian exports should increase and Australian imports should increase.
• B)Australian exports should decrease and Australian imports should increase.
• C)Australian exports should increase and Australian imports should decrease.
• D)Australian exports should decrease and Australian imports should decrease.

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Definitions:

Delivery Gap

The difference between customer expectations for service delivery and the actual service delivered.

Service Failure

A situation where a service does not meet a customer's expectations, leading to dissatisfaction or complaints.

Inseparability of Services

Refers to the concept that services are produced and consumed at the same time, meaning the provider and the customer must be present for the transaction to occur.

Satisfaction Guarantees

A promise made by a company to refund or replace a product if a customer is not satisfied with the purchase, intended to reduce purchase risk and increase customer trust.