Changes in Foreign Exchange Rates Can Affect a Firm in All

question 31

Multiple Choice

Changes in foreign exchange rates can affect a firm in all of the following ways except:

• A) The prices a firm pays to acquire raw materials from suppliers abroad.
• B) The amount of cash a firm receives when it collects an account receivable, a loan
• Receivable, or another receivable denominated in a currency other than its own.
• C) The value of domestic liabilities with fixed interest rates.
• D) The prices a firm charges for products sold to customers abroad.

---

Definitions:

Support Functions

Auxiliary activities in an organization that assist the core business operations without being part of them, such as IT and HR services.

Differentiation Strategy

A business approach where a company aims to stand out in its industry by offering unique products or services compared to its competitors.

Global Fashion Leaders

Refers to companies, designers, or brands with significant influence on international fashion trends and markets.

Fashion Shows

Events organized to showcase new clothing designs from one or more fashion designers to the public, media, and industry insiders.