Ask Question
2 June, 17:45

When exchange rates change:

Multiple Choice:

O U. S. firms that produce domestically and sell only to domestic customers will be unaffected.

O U. S. firms that produce domestically and sell only to domestic customers can be affected if they compete against imports.

O U. S. firms that produce domestically and sell only to domestic customers will be affected, but only if they borrow in foreign currency to finance their domestic operations.

O U. S. firms that produce domestically and sell only to domestic customers will be unaffected, and U. S. firms that produce domestically and sell only to domestic customers can be affected if they compete against imports.

+1
Answers (1)
  1. 2 June, 18:15
    0
    Correct answers:

    B) U. S. firms that produce domestically and sell only to domestic customers can be affected if they compete against imports - If the dollar gains value against other curriencies, for example, the Euro, European products might become cheaper than American products.

    C) U. S. firms that produce domestically and sell only to domestic customers will be affected, but only if they borrow in foreign currency to finance their domestic operations. - For example, If the dollar loses value against the Euro, an American company with debts in euros will have to pay more capital and interest, and this will likely result in a worse financial position.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When exchange rates change: Multiple Choice: O U. S. firms that produce domestically and sell only to domestic customers will be ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers