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With Respect to Exchange Rates and Competition, It Is Correct

Question 53

Multiple Choice

With respect to exchange rates and competition, it is correct to say that


A) companies that conduct international operations do not have to worry about the effect of exchange-rate fluctuations on competition because the accounting department does the conversions.
B) as the value of a country's currency falls, its balance of trade becomes less favourable.
C) as the value of a country's currency falls, there is an increased incentive for foreign companies to ship products into the domestic market.
D) Canadian firms can deal with a stronger Canadian dollar by increasing the efficiency their operations.
E) all of these are correct.

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