With respect to home currency (HC) appreciation, the key issue for a domestic firm is its degree of ______.

Question

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Home currency appreciation can make a domestic firm's products more expensive compared to foreign competitors' products. This means that the firm needs to have pricing flexibility to adjust the prices of its products accordingly to remain competitive. Market share, product differentiation, and marketing plan are important for any firm regardless of exchange rate fluctuations, but pricing flexibility becomes crucial in dealing with exchange rate changes.

With Respect to Home Currency (HC) Appreciation, the Key Issue