Exchange rate changes can be an important factor even for a small firm that sells only in its own local market.

Question

Quizplus · Accepted Answer

Exchange rate changes can affect a company's supply chain, cost of goods, and the competitiveness of its products even if it only sells in its local market. It can also impact the profitability of the company if it sources materials or sells products in foreign currency. Therefore, exchange rate changes can be significant for a small firm selling only locally.

Exchange Rate Changes Can Be an Important Factor Even for a Small