Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to

Question

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Reducing margins on export products can help a company maintain or increase its production volume, which in turn can lead to lower unit costs due to learning curve advantages. This strategy can be particularly useful when a company's home currency appreciates, making its exports more expensive and potentially less competitive in foreign markets.

Companies That Reduce Their Margins on Export Products in the Face