Recently the British Pound Suffered an Unexpected Depreciation in Value

question 23

Multiple Choice

Recently the British Pound suffered an unexpected depreciation in value. Which of the following actions being considered by Coventry Furniture of London, a purely domestic furniture manufacturer and retailer, would be considered a highly unlikely response to the depreciation of the pound?

• A) Coventry might choose to maintain its domestic sales prices constant in pound terms.
• B) Coventry might try to raise domestic prices because competing imports are now priced higher in England.
• C) Coventry might try to lower domestic prices because competing imports are now priced higher in England.
• D) none of the above

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Definitions:

Ethics Competency

The ability to understand ethical principles, recognize ethical dilemmas, and make decisions that are in line with ethical guidelines.

Creative Accounting

The practice of manipulating financial records and reports to present a more favorable view of a company's financial position than is actually the case.

Corporate Theft

Corporate theft refers to the illegal taking of a company's assets, either by individuals within the organization or by external parties, for personal gain.

Extinction Procedure

A behavioral psychology technique involving the discontinuation of reinforcements for a certain behavior, leading to its reduction or elimination.