Which of the Following Accurately Explains How Producers Are Affected

question 81

Multiple Choice

Which of the following accurately explains how producers are affected by exchange rate changes?

• A)To save money, a manufacturer may decide to relocate production to a country with a stronger currency.
• B)A manufacturing firm relocating to a country with a weak currency can make a cheap initial investment.
• C)Goods manufactured in a country with a weak currency may be relatively expensive in world markets.
• D)A manufacturer with high operating expenses would likely relocate production to a country with a currency that is gaining value.

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Definitions:

Mechanism

A system of moving parts designed to perform a specific function within a larger machine or device.

Abbreviation

An abbreviated version of a word or phrase.

Bill of Materials

A comprehensive list of raw materials, components, and assemblies required to construct, manufacture, or repair a product or service.

Standard Parts

Components that are manufactured to a set specification and can be used interchangeably across different devices or assemblies.