The decline of the U.S.dollar relative to other currencies has caused firms outside the U.S. ,such as BMW and Volkswagen to:
A)Experience increasing sales in the U.S.
B)Experience increasing sales worldwide.
C)Locate plants in the U.S.to reduce overall manufacturing costs.
D)Require dealers to make payments in the Euro.

Question

Quizplus · Accepted Answer

When the U.S. dollar declines relative to other currencies, it becomes more cost-effective for foreign companies to produce goods in the U.S., leading them to locate plants there to reduce manufacturing costs and take advantage of the weaker dollar.

The Decline of the U