If an export firm is pricing to market,the firm benefits most from

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If an export firm is pricing to market, then it is adjusting its prices to match the prices of its competitors in the importing markets. Therefore, a depreciation of the exporting country's currency would benefit the firm by making its products more price competitive compared to its competitors. A strong domestic currency (option B) would have the opposite effect, making the firm's exports more expensive. High tariffs (option A) would not benefit the firm, as it would face a higher cost to export. Being in a competitive industry (option D) where the law of one price holds would only benefit the firm if it can compete on price with its competitors. High transport costs (option E) would increase the cost of exporting and would not benefit the firm.

If an Export Firm Is Pricing to Market,the Firm Benefits