If a UK firm's cost of goods sold exposure is much greater than its sales exposure in Switzerland, there is a ____ overall impact of the Swiss franc's depreciation against the pound on ____.

Question

Quizplus · Accepted Answer

When the Swiss franc depreciates against the pound, the cost of goods sold in Swiss francs becomes cheaper for the UK firm, improving gross profit if sales remain constant.

If a UK Firm's Cost of Goods Sold Exposure Is