A firm that is committed to keeping manufacturing facilities in only the home country (and not developing multiple production sites in a variety of countries) can
A) lessen the effect of exchange rate changes by pursuing a strategy of diversifying the markets in which the firm's products are sold.
B) not mitigate the effects of exchange rate changes.
C) lessen the effect of exchange rate changes by pursuing a strategy of selling commodity products without product differentiation.
D) pursue a strategy of increasing its products price elasticity of demand.
Correct Answer:
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