Which of the following groups does NOT benefit when a nation has a weak currency?
A) foreign tourists who are visiting the country
B) foreign firms that operate facilities within the nation
C) domestic firms that want to export goods to foreign markets
D) domestic firms with operations in foreign countries

Question

Quizplus · Accepted Answer

Domestic firms with operations in foreign countries will benefit from a weak currency because it makes their products cheaper to produce and hence more competitive in the foreign markets. A weak currency, however, hurts foreign tourists who are visiting the country because their currency has more purchasing power, foreign firms that operate facilities within the nation because their profits will be worth less in their home currency, and domestic firms that want to export goods to foreign markets because their goods will be more expensive in the foreign markets.

Which of the Following Groups Does NOT Benefit When a Nation