When a currency depreciates,exporters to that country face the trade-off to ________.

Question

Quizplus · Accepted Answer

When a currency depreciates, the prices of exports from that country becomes cheaper in foreign markets. This can result in an increase in demand for the country's exports, leading to higher sales volume. However, the exporters face a trade-off between maintaining profits or market share. They can choose to maintain profits by keeping prices constant and potentially losing market share, or they can reduce prices to gain a larger market share but potentially lower their profits. Ultimately, the best choice depends on the individual company's goals and situation.

When a Currency Depreciates,exporters to That Country Face the Trade-Off