The Advantages of Manufacturing Goods in a Particular Country and Exporting

question 71

Multiple Choice

The advantages of manufacturing goods in a particular country and exporting them to foreign markets

• A)are largely unaffected by fluctuating exchange rates.
• B)are greatest when local distributors and dealers in that country can be convinced not to carry products that are made outside the country's borders.
• C)can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output is being sold.
• D)are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is being sold.
• E)are multiplied by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their country.

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