Charles Associates is a U.S.company and has a central production plant in the U.S.(Currency: U.S.dollar).It imports capital equipment and raw materials from Italy and Germany (Currency: Euro).The company exports its products to China (Currency: Renminbi),Japan (Currency: Yen),and India (Currency: Rupee).Which of the following changes in the exchange market is beneficial to Charles Associates?
A) The U.S. dollar has strengthened against the Rupee.
B) The U.S. dollar has strengthened against the Renminbi.
C) The U.S. dollar has strengthened against the Euro.
D) The Yen has become weak against U.S. dollars.
E) The Euro has become strong against U.S. dollars

Question

Quizplus · Accepted Answer

A)If the U.S. dollar strengthens against the Euro, the company can obtain supplies at lower cost. This is beneficial to the company.
B)If the U.S. dollar strengthens against the Euro, the company can obtain supplies at lower cost. This is beneficial to the company.
C)If the U.S. dollar strengthens against the Euro, the company can obtain supplies at lower cost. This is beneficial to the company.
D)If the U.S. dollar strengthens against the Euro, the company can obtain supplies at lower cost. This is beneficial to the company.
E)If the U.S. dollar strengthens against the Euro, the company can obtain supplies at lower cost. This is beneficial to the company.

Charles Associates Is a U