A firm's ability to raise its foreign currency selling price sufficiently to preserve its home currency profit margin in the case of foreign currency depreciation is considered to be

Question

Quizplus · Accepted Answer

Pricing flexibility refers to the ability of a firm to adjust its prices in response to changes in market conditions such as foreign currency depreciation. This allows the firm to maintain its profit margin even if its costs in the foreign currency increase. The other options are not relevant to this concept.

A Firm's Ability to Raise Its Foreign Currency Selling Price