Question
11.18Which one of the following would NOT be an appropriate response for a U.S. exporter to appreciation of the dollar? a)raise the foreign currency price
11.18Which one of the following would NOT be an appropriate response for a U.S. exporter to appreciation of the dollar?
a)raise the foreign currency price if the dollar appreciation was expected to be temporary and the cost of regaining market share was minimal
b)move some production offshore if the appreciation were expected to persist for an extended period
c)keep the foreign currency price constant if demand is quite elastic
d)lower the foreign currency price if demand is inelastic for the product
can you explain why a) c) are appropriate and d) are non-appropriate
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