When considering the currency pass-through phenomenon, all of the following factors give an indication as to the appropriate action except:
A)the customer's price sensitivity.
B)government actions.
C)the impact of dollar appreciation on the firm's cost structure.
D)the impact of dollar depreciation on the firm's cost structure.
E)the amount of competition in the export market.

Question

Quizplus · Accepted Answer

Government actions, while they can influence market conditions and trade policies, do not directly indicate the appropriate action for a company in terms of currency pass-through decisions. Currency pass-through involves adjusting prices in response to exchange rate changes, which is more directly related to factors like customer price sensitivity, cost structure impacts, and market competition.

When Considering the Currency Pass-Through Phenomenon, All of the Following