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A European Manufacturer That Exports Goods Made at Its European

Question 3

Multiple Choice

A European manufacturer that exports goods made at its European plants to the United States


A) is competitively disadvantaged when the euro declines in value against the U.S. dollar.
B) is largely unaffected by fluctuating exchange rates between the euro and the U.S. dollar; it would, however, be affected if its plants were in the U.S.
C) becomes more competitive in the U.S. market when the euro declines in value against the U.S. dollar.
D) becomes more competitive in European markets when the euro declines in value against the U.S. dollar.
E) has no interest in whether the euro grows stronger or weaker versus the U.S. dollar unless its chief competitors are other companies located in countries whose currency is also the euro.

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