A European-Based Company That Makes All of Its Goods at a Plant

question 12

Multiple Choice

A European-based company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country markets in many different parts of the world

• A)is competitively disadvantaged when the euro declines in value against the Brazilian real.
• B)is competitively disadvantaged when the Brazilian real declines in value against the currencies of the countries to which the Brazilian-made goods are being exported.
• C)becomes less competitive in foreign markets when the Brazilian real gains in value against the currencies of the countries to which the Brazilian-made goods are being exported.
• D)is competitively advantaged when the euro appreciates in value against the Brazilian real.
• E)has no interest in whether the euro grows stronger or weaker versus the Brazilian real unless its chief competitors are other companies located in countries whose currency is also the euro.

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Definitions:

Inhibitory Postsynaptic Potential

A type of synaptic potential that makes a post-synaptic neuron less likely to generate an action potential.

Excitatory Postsynaptic Potential

A temporary increase in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell.

Presynaptic Neuron

The neuron that sends a signal across a synapse to a target neuron during neurotransmission.

Action Potentials

Rapid electrical impulses that travel along the axon of a neuron, enabling nerve signal transmission.