While Deciding a Location for a Manufacturing Base, Which of the Following

question 12

Multiple Choice

While deciding a location for a manufacturing base, which of the following can be directly determined by organizations based on the foreign exchange rate of a country's currency?

• A) potential competition
• B) product fit
• C) demands for a product
• D) costs of production

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Definitions:

Relative Prices

Relative prices refer to the price of one good or service compared to the price of another, essentially showing their cost relationship.

Japanese Goods

Products manufactured in Japan, known for their quality in various industries including electronics, automobiles, and machinery.

Yen Appreciates

This occurs when the value of the Japanese yen increases relative to other currencies in the foreign exchange market.

Dollar Appreciates

An increase in the value of the US dollar compared to other currencies, making imports cheaper and exports more expensive.