In the face of a currency depreciation,if the firm maintains its foreign currency price,it will ________.

Question

Quizplus · Accepted Answer

If the firm maintains its foreign currency price despite currency depreciation, its products will become relatively more expensive in the local market, leading to a decrease in sales volume and ultimately decrease in profits. However, the firm may be able to maintain its market share if competitors also increase their prices in response to the currency depreciation.

In the Face of a Currency Depreciation,if the Firm Maintains