Exchange rate shifts can produce sometimes favorable

Assignment Help Business Economics
Reference no: EM131092710

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is NOT true Exchange rate shifts can produce sometimes favorable and sometimes unfavorable effects on a company's competitiveness. Domestic companies under pressure from lower-cost imports are hurt even more when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made. Exporters win when the currency of the country from which the goods are being exported grows weaker relative to the currencies of the countries that the goods are being exported to. Fluctuating exchange rates pose significant risks to a company's competitiveness in foreign markets. Domestic companies under pressure from lower-cost imports are benefited when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.

Reference no: EM131092710

Questions Cloud

Labor on horizontal axis and capital on vertical axis : Consider our standard model of an isocost curve with Labor on the horizontal axis and Capital on the vertical axis. Suppose that interest rates in the economic decrease. How would this impact a given isocost curve? Which one is right?
Discuss the level of bank reserves-excess reserves : The Fed has conducted quantitative easing for about 6 years: QE1 – QE3 and has increased the size of their balance sheet more than 4 fold. Discuss the level of bank reserves, excess reserves and cash in the system and why this has not lead to massive..
The data for three predictor variables : a. Fit regression model (6.5) to the data for three predictor variables. State the estimated regression function. How are bl ,b2 , and b3 interpreted here?
Monetary theory examines the role of excess reserves : Monetary theory examines the role of excess reserves (actual reserves minus required reserves) in influencing economic activity and Federal Reserve monetary policy. Viewed in the context of a single bank, excess reserves are difficult to measure. Exp..
Exchange rate shifts can produce sometimes favorable : Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is NOT true Exchange rate shifts can produce sometimes favorable and sometimes unfavorable effects on a company's competi..
Determine the stresses sx sy and sz : Determine the stresses sx sy and sz
What is the p-value for the test : GB513 - Hypothesis Testing: Describing a single population - Can we conclude that this belief is correct, based on productivity observation of 50 trainees which was found to have an average of 460.38 and standard deviation 38.83?
Analyze how the changes in the feds policy will influence : Analyze how the changes in the Fed's policy will influence each of the components of aggregate demand. Make sure to describe what will specifically happen to each of the components of aggregate demand.
Make firm more likely to pay efficiency wages : Which of the following both make a firm more likely to pay efficiency wages?

Reviews

Write a Review

Business Economics Questions & Answers

  Technological advantage is often transitory

Technology is viewed by economists as a source of comparative advantage but technological advantage is often transitory. Use the Product Life Cycle (PLC) Theory to explain the role of technological innovation as a key determinant of the trade pattern..

  Qabc sweaters are greatly admired by their aficionados the

q.abc sweaters are greatly admired by their aficionados. the demand for these sweaters is given by q 13 - 0.02 p where

  Decrease in the domestic interest rate

A decrease in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant

  What is the marginal product of the generic bleach

A laundry cleans white clothes using Clorox bleach or generic bleach. The Clorox bleach is twice as "productive" as the generic, or twice as potent. To clean a basket of white clothes, you need a scoop of Clorox, or two scoops of the generic bleach. ..

  Describe different methods of allocating scarce resources

Explain how these allocation methods may affect quantity demanded, equilibrium price, and quantity supplied. Are these allocation methods more or less efficient than other methods?

  What is the internal rate of return of this investment

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $135,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..

  Economy has marginal propensity to consume

Your economy has a marginal propensity to consume (MPC) of 0.70. It is currently operating at a level at less than full employment. Prices appear to be sticky in this economy, but by some lucky stroke the rate of interest falls. Using the Keynesian C..

  Q a county is considering using a piece of park land for

q. a county is considering using a piece of park land for one of two alternative recreation projects. project s would

  Explain how they fit into economics

Select two subject and explain how they fit into economics- what do the subject have in common? How does it impact how you think about economics? What can you learn from it? and how can you apply it?

  What are sues variable costs

Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..

  Explain what should be the production level if fixed costs

Explain what should be the production level if fixed costs rose to $70,000 per month. what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity.

  What accounts for the different decisions

In March 2008, the Fed helped prevent the bankruptcy of Bear Sterns. However, in September 2008, the Fed and the Treasury let Lehman Brothers go bankrupt. What accounts for the different decisions?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd