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If the Domestic Currency Is Strong or Expected to Become

Question 87

Multiple Choice

If the domestic currency is strong or expected to become strong,


A) a firm can choose to locate production facilities in a foreign country where costs are low due to either the undervalued currency or underpriced factors of production.
B) a firm should curtail R&D efforts until the exchange rate situation improves.
C) a firm should abandon international sales and focus on domestic market share.
D) the firm should focus on profiting in the currency futures market based on its forecasts.

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