A U.S. organic personal hygiene product manufacturer that exports toothpaste and deodorant made at its U.S. plants for shipment to the U.K. market
A) is competitively disadvantaged when the U.S. dollar declines in value against the British pound.
B) is largely unaffected by fluctuating exchange rates. It would, however, be affected if its plants were in the U.K or other foreign countries.
C) becomes more competitive in the U.K. when the U.S. dollar gains in value against the British pound.
D) becomes more competitive in the U.K. when the U.S. dollar declines in value against the British pound.
E) has no interest in whether the dollar grows stronger or weaker versus the British pound unless it is competing only against companies located in the U.K.
Correct Answer:
Verified
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