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A company's sells goods for both local consumption and export markets with competing substitute products being produced in all countries. A depreciation of the company's
A company's sells goods for both local consumption and export markets with competing substitute products being produced in all countries. A depreciation of the company's domestic currency should: result in a decrease in the company's cash outflows which are required to pay for imported supplies that have been denominated in a foreign currency result in a decrease in the company's exports which are denominated in the domestic currency None of these are correct result in an increase in domestic sales as foreign competition in the domestic market is reduced result in a decrease in the returns earned on the company's foreign bank deposits
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