The Appropriate Response for a U

question 4

Multiple Choice

The appropriate response for a U.S.exporter to depreciation of the dollar would be to

• A)raise the foreign currency price if the dollar depreciation was expected to be temporary and the cost of losing market share was minimal
• B)move some production offshore if the depreciation were expected to persist for an extended period
• C)lower the foreign currency price constant if demand is quite inelastic
• D)set up a netting center in the home country

---

Definitions:

Goodwill

An intangible asset that represents the excess value of a company over its net asset value, often arising from factors such as reputation, brand, or customer loyalty.

Intangible Assets

Assets that do not have physical substance but are identifiable non-monetary assets without physical substance, used in the production or supply of goods or services, for rental to others, or for administrative purposes.

Identifiability

The capability to recognize, define, or distinguish assets and liabilities within a transaction or set of financial data.

AASB 138

A guideline issued by the Australian Accounting Standards Board that mandates how entities should account for and report on intangible assets.