Identify the Incorrect Statement Pertaining to Exchange Rate Movements

question 41

Multiple Choice

Identify the incorrect statement pertaining to exchange rate movements.

• A)Adverse changes in exchange rates can quickly alter a country's attractiveness as a manufacturing base.
• B)Currency appreciation can transform a low-cost location into a high-cost location.
• C)Currency appreciation can cause firms to move their manufacturing offshore to lower-cost locations.
• D)A low-cost location can be transformed into a high-cost location because of currency depreciation.

---

Definitions:

State Lawmakers

are elected officials at the state level responsible for creating and amending state laws and regulations.

Neutral

In the context of labor relations, this refers to a party or individual who does not show bias to either side in negotiations, disputes, or conflicts.

Mediation

The process of resolving conflicts through the assistance of a neutral facilitator who helps the disputing parties reach a consensus.

Mutually Acceptable Agreement

An agreement reached through negotiation or mediation that is satisfactory to all parties involved.