The appreciation of the domestic currency is:
A) always good for firms with international operations
B) always bad for firms with international operations
C) good or bad, depending on the specific conditions of the situation
D) good or bad, depending on the interest rate differential

Question

Quizplus · Accepted Answer

The appreciation of the domestic currency can be either good or bad for firms with international operations, depending on various factors such as the nature of their business (e.g., exporting or importing), their cost structures, and the markets in which they operate.

The Appreciation of the Domestic Currency Is