A U.S. company that buys from a supplier whose currency is increasing against the dollar will most likely have to do which of the following if the price is expressed in the supplier's currency?

Question

Quizplus · Accepted Answer

If the supplier's currency is increasing in value against the dollar, it means that each dollar buys less of the foreign currency. Therefore, the U.S. company will have to spend more dollars to purchase the same amount of goods or services, leading to higher costs than initially expected.

A US Company That Buys from a Supplier Whose Currency Is