When a Currency Depreciates,if the Firm Increases It Foreign Currency

question 1

Multiple Choice

When a currency depreciates,if the firm increases it foreign currency price to maintain its profits,it will ________.

• A) gain sales from foreign rivals
• B) maintain its market share
• C) lose sales to foreign rivals
• D) be forced to exit the market

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Definitions:

Imports

Goods and services purchased from other countries to be sold or used domestically.

Exports

Exports refer to goods or services produced in one country and sold to buyers in other countries, contributing to the exporting country's economy.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.