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The Advantages of Manufacturing Goods in a Particular Country and Exporting

Question 27

Multiple Choice

The advantages of manufacturing goods in a particular country and exporting them to foreign markets


A) are largely unaffected by fluctuating exchange rates.
B) are greatest when local distributors and dealers in that country can be convinced not to carry products that are made outside the country's borders.
C) can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output is being sold.
D) are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is being sold.
E) are multiplied by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their country.

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