In general, a firm that concentrates on local sales, has very little foreign competition, and obtains foreign supplies (denominated in foreign currencies) will likely ____ a(n) ____ local currency.

Question

Quizplus · Accepted Answer

A firm that obtains foreign supplies denominated in foreign currencies will face higher costs if the local currency depreciates, as it will require more local currency to purchase the same amount of foreign currency.

In General, a Firm That Concentrates on Local Sales, Has