Which of the Following Statements Concerning the Effects of Fluctuating

question 1

Multiple Choice

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?

• A)Fluctuating exchange rates pose no significant risks to a company's competitiveness in foreign markets.
• B)Competitive advantages of manufacturing goods in a particular country are largely unaffected by fluctuating exchange rates.
• C)Exporters are advantaged when the currency of the country where goods are being manufactured grows stronger.
• D)Exporters always gain in cost/price competitiveness when the currency of the country in which the goods are manufactured is weak.
• E)Exporters always lose in cost/price competitiveness when the currency of the country in which the goods are manufactured is weak.

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