Which of the following is a valid example of costs associated with global sourcing decisions?
A) If, for example, the Indian rupee decreases relative to the Canadian dollar, the cost of private-label merchandise produced in India and imported for sale into Canada will decrease.
B) For American retailers in the U.S.A., inventory turnover is likely to be higher when purchasing from suppliers outside the United States than from domestic suppliers.
C) The legal-political system in foreign countries should never impact the human resource management practices that retailers can use in those countries.
D) If, for example, the Indian rupee increases relative to the Canadian dollar, the cost of private-label merchandise produced in India and imported for sale into Canada will decrease.
E) To reduce the effects of currency fluctuations retailers avoid the use of financial instruments such as options and futures contracts.

Question

Quizplus · Accepted Answer

Currency fluctuations can impact the cost of goods sourced internationally. If the Indian rupee decreases relative to the Canadian dollar, it would cost less in Canadian dollars to purchase the same amount of goods from India, thus decreasing the cost of merchandise imported into Canada.

Which of the Following Is a Valid Example of Costs