With dramatic swings in exchange rates, particularly in a freely floating exchange rate regime, setting prices for internationally traded goods is a challenge for international business management. The extent to which an international business adjusts prices in a foreign market as the result of an exchange rate change is called the:

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The exchange rate pass-through refers to the extent to which the prices of internationally traded goods are adjusted in response to changes in the exchange rate. This concept is crucial for businesses operating in multiple countries, as it affects pricing strategies in foreign markets.

With Dramatic Swings in Exchange Rates, Particularly in a Freely