As the value of a country's currency rises,________.
A) domestic companies will have a harder time selling their products in foreign markets
B) foreign companies will find it easier to sell their products in local markets
C) imports and exports will remain relatively constant
D) A and B

Question

Quizplus · Accepted Answer

When a country's currency value rises, its goods become more expensive for foreign buyers, making it harder for domestic companies to sell abroad (A). Conversely, foreign goods become cheaper for local consumers, making it easier for foreign companies to sell in the local market (B).

As the Value of a Country's Currency Rises,________