In July 2001,the euro's value relative to the dollar was about €1.00 = $0.85.By November 2009,the euro had strengthened to €1.00 = $1.48.In February 2012,one euro was equal to $1.33,in August 2015 €1.00 = $0.99 and in September 09,2018 €1.00 = $0.87.All other things being equal,if a European-based global company wants to preserve margins for goods exported to the U.S.market,the company should:
A)raise prices in dollars.
B)switch to cost-based pricing.
C)adopt a policy of market penetration pricing.
D)reduce prices in dollars.
E)use skimming pricing.

Question

Quizplus · Accepted Answer

To preserve margins when the euro strengthens against the dollar, the company should raise prices in dollars to offset the reduced value of euro-denominated revenues.

In July 2001,the Euro's Value Relative to the Dollar Was