It is only crucial that managers pay attention to long-run movements informed by PPP, productivity changes, and balance of payments because short-run fluctuations always even out.

Question

Quizplus · Accepted Answer

Short-run fluctuations in exchange rates can have significant impacts on a company's profitability, competitiveness, and supply chain. Ignoring short-term fluctuations can lead to missed opportunities or unexpected losses. Therefore, managers should pay attention to both short-run fluctuations and long-run movements in foreign exchange rates. Short-run fluctuations can have significant impacts on a business, such as changes in exchange rates or sudden shifts in consumer demand. Ignoring these short-run movements can lead to missed opportunities or unexpected risks. Therefore, while long-run trends are important to consider, managers must also pay attention to short-run fluctuations.

It Is Only Crucial That Managers Pay Attention to Long-Run