A purely domestic firm is never exposed to exchange rate fluctuations.

Name: A purely domestic firm is never exposed to exchange rate fluctuations.
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Question

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A purely domestic firm may still be affected by exchange rate fluctuations if it imports or exports goods or services, deals with foreign suppliers or customers, or has investments in foreign countries. Exchange rate fluctuations can impact the cost of imports or the revenue from exports, affecting the firm's profitability.

A Purely Domestic Firm Is Never Exposed to Exchange Rate