Which of the following is a consequence of adverse changes in exchange rates?

Question

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Adverse changes in exchange rates can alter a country's attractiveness as a manufacturing base as it affects the cost competitiveness of goods produced in the country. A weakening of the domestic currency can make exports cheaper and imports more expensive, thus making the domestic manufacturing base more attractive. However, if the domestic currency strengthens, the manufacturing base may become less competitive. Options A, B, D, and E are incorrect as they do not align with the consequences of adverse changes in exchange rates.

Which of the Following Is a Consequence of Adverse Changes