Assume that Ford Motor Company obtains all of its inputs in the United States and all of its costs are denominated in dollars.A depreciation of the dollar's exchange value
A) enhances its international competitiveness.
B) worsens its international competitiveness.
C) does not affect its international competitiveness.
D) None of these are correct.

Question

Quizplus · Accepted Answer

A depreciation of the dollar's exchange value enhances Ford Motor Company's international competitiveness as its products become relatively cheaper for buyers abroad. This can lead to increased demand for its products and higher revenue.

Assume That Ford Motor Company Obtains All of Its Inputs