Which of the following would not be used by an exporter with a weak home-country currency?
A)expand product line and add more costly feature
B)speed repatriation of foreign-earned income
C)buy advertising,insurance,and other services in home-country market
D)shift sourcing outside home-country market
E)exploit marketing opportunities in all markets

Question

Quizplus · Accepted Answer

When an exporter's home-country currency is weak, it becomes more cost-effective to source materials and production domestically because the cost of importing goods or services from abroad would be relatively higher. Therefore, shifting sourcing outside the home-country market would not be a strategy used in this scenario, as it would be more expensive due to the weak currency. Choices A, B, C, and E are strategies that could be advantageous when the home-country currency is weak, such as expanding product lines (A), speeding up the repatriation of foreign-earned income to take advantage of the favorable exchange rate (B), buying services domestically where they are relatively cheaper due to the weak currency (C), and exploiting marketing opportunities in all markets to increase revenue (E).

Which of the Following Would Not Be Used by an Exporter