Movement in currency exchange rates has a direct impact on the competitiveness of a company's products in the domestic market, but not in the international market.

Question

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Movement in currency exchange rates has a direct impact on the competitiveness of a company's products in both domestic and international markets. If the currency of a country weakens against other currencies, its products become relatively cheaper, increasing competitiveness in both the domestic and international markets. Conversely, if the currency strengthens, a company's products become relatively more expensive, decreasing competitiveness in both markets.

Movement in Currency Exchange Rates Has a Direct Impact on the Competitiveness