Currency Exchange Fluctuations Are Important for a Business to Understand

question 106

Multiple Choice

Currency exchange fluctuations are important for a business to understand because they can ____________________

• A)affect profitability in a international transaction
• B)affect pricing in a country market
• C)affect the competitive advantage of a company
• D)increase costs for imported goods
• E)all of these answers are correct

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Definitions:

Causal Relationship

A connection between two events where one is the effect of the other or happening as a result of the other.

Argument by Analogy

A form of reasoning that compares two different situations or things to draw a conclusion about their similarities.

Similarities

Refers to the aspects or characteristics that are alike or shared between two or more entities.

Analogies

A comparison between two things, typically for the purpose of explanation or clarification, showing similarities in some respects.