U.S. firms involved in international trade have to _____
A) anticipate U.S. inflation and ignore the value of the dollar relative to foreign currencies.
B) ignore U.S. inflation and ignore the value of the dollar relative to foreign currencies.
C) anticipate U.S. inflation and guess the value of the dollar relative to foreign currencies.
D) ignore U.S. inflation and guess the value of the dollar relative to foreign currencies.
E) International transactions are not affected by inflation or foreign exchange.
Correct Answer:
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