When we examine operating exposure,the key issue for a domestic firm is its

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Pricing flexibility is the key issue for a domestic firm when examining operating exposure. This is because pricing flexibility allows the firm to adjust its prices in response to changes in exchange rates and international competition. This helps the firm to maintain its competitive position and avoid losses due to currency fluctuations. Prior import competition, asset valuation adjustment, and low import content are important factors but they are not the key issue when examining operating exposure.

When We Examine Operating Exposure,the Key Issue for a Domestic