An appliance manufacturer that imports significant quantities of merchandise from a foreign country needs a contingency plan in the event the value of the U.S. dollar drops relative to the country where the appliances are imported from.

Question

Quizplus · Accepted Answer

A drop in the value of the U.S. dollar relative to the currency of the country from which the appliances are imported would make imports more expensive, impacting the cost structure of the manufacturer. A contingency plan would help mitigate these financial risks.

An Appliance Manufacturer That Imports Significant Quantities of Merchandise from a Foreign