When an exporter gains a price advantage because its home-country currency is weakening relative to its customer's currency, then it should consider raising the prices of its products.

Question

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When an exporter's home-country currency weakens relative to its customer's currency, the exporter's products become cheaper in the customer's currency. This can allow the exporter to raise prices without losing competitiveness, potentially increasing profit margins.

When an Exporter Gains a Price Advantage Because Its Home-Country