As the value of a country's currency rises
A) domestic companies will have a harder time selling their products in foreign markets.
B) foreign companies will find it harder to sell their products in local markets.
C) imports and exports will remain relatively constant.
D) domestic companies will shift from the production of consumer goods to the production of industrial goods.
E) all of these will happen.

Question

Quizplus · Accepted Answer

When the value of a country's currency rises, its exports become more expensive for foreign buyers. As a result, foreign countries may buy fewer products from the country or turn to cheaper alternatives, causing domestic companies to have a harder time selling their products in foreign markets.

As the Value of a Country's Currency Rises