For a Firm That Competes Internationally to Sell Its Products

question 40

Multiple Choice

For a firm that competes internationally to sell its products, a depreciation of its domestic currency relative to markets where the firm exports goods, should eventually result in ________ sales at home and ________ sales abroad, other things equal.

• A) fewer; greater
• B) fewer; fewer
• C) greater; greater
• D) greater; fewer

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Definitions:

Euro

The Euro is the official currency of 19 out of the 27 European Union countries, known collectively as the Eurozone.

U.S. Dollars

The official currency of the United States, used as a standard monetary unit for international transactions and reserves.

Ad Valorem Duty

A type of tax calculated based on the value of the goods, services, or property.

German Firm

A business or company that is registered, headquartered, or primarily operates within Germany.