To remain price competitive when the dollar is strong, export-oriented companies must find ways to offset the higher price caused by currency values.

Question

Quizplus · Accepted Answer

When the value of the dollar is weak relative to the buyer's currency (i.e., it takes fewer units of the foreign currency to buy a dollar), companies generally employ cost-plus pricing. To remain price competitive when the dollar is strong (i.e., when it takes more units of the foreign currency to buy a dollar), companies must find ways to offset the higher price caused by currency values.

To Remain Price Competitive When the Dollar Is Strong, Export-Oriented