Posh Pools Inc. was ready to sign an agreement to build a new facility in a foreign nation when it learned that the local currency in that nation had appreciated significantly in the past week. How might this affect the company's decision to build the new facility?
A) The company will want to make more foreign direct investment in that country.
B) There will be a decrease in the dollar cost of products exported from that nation which benefits Posh Pools.
C) This will diminish the attractiveness of this country as a manufacturing base for Posh Pools.
D) This will transform the country into a low-cost location and make it more desirable for manufacturing.
E) This will decrease the amount of imports brought into the country and make it more attractive for manufacturing.
Correct Answer:
Verified
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