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Scenario: Just-For-Kids, Inc. Just-For-Kids, Inc. Is a Toys and Clothes Manufacturer Based in Manufacturer

Question 131

Multiple Choice

Scenario: Just-for-Kids, Inc.
Just-for-Kids, Inc. is a toys and clothes manufacturer based in San Diego, California. The company has received an inquiry from an overseas company to do business. Tom Dodd is the owner of the company researching the opportunity and how exchange rates will affect its international business activities.
-The government of the country that Just-for-Kids is considering doing business in just lowered the value of its currency, which is referred to as ________.


A) the Fisher effect
B) devaluation
C) fundamental disequilibrium
D) revaluation

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