Currency fluctuations can be an advantage to firms trading in the global market.

Question

Quizplus · Accepted Answer

Currency fluctuations can create opportunities for firms to buy low and sell high, leading to increased profits in international trade. Additionally, fluctuations can provide a competitive advantage for firms operating in countries with weaker currencies, making their products more affordable to foreign buyers. However, it is important for firms to also manage the risks associated with currency fluctuations.

Currency Fluctuations Can Be an Advantage to Firms Trading in the Global