Question
Analyze each of the situations below and indicate their preference for their domestic currency value relative to other currencies . In order to answer, you
Analyze each of the situations below and indicate their preference for their domestic currency value relative to other currencies. In order to answer, you must analyze the impact
of currency exchange fluctuation on the product or service they sell or deal with, and/or
a product or service that competes with theirs whether made domestically
or in another country. This should be considered along with receipts and payments consideration.
To answer the question just put an A, B, or C next to 1. , 2.,3 ,.......listed vertically.
A = prefer higher relative domestic currency to foreign currency (appreciating/stronger currency)
B = prefer lower relative domestic currency to foreign currency (depreciating/weaker currency)
C = would not care either way/indifferent to domestic currencies relative value
- __B___Portugal company that makes flavored wine that they export to the U.S. only and do not sell domestically in their home market or anywhere else
- __C___U.K. clothing retailer that gets all of its products for its stores out of China and Turkey..
- __A___Consumers who buy imported wines and cheese.
- __A___Workers in furniture manufacture companies that have yet to enter the international market either importing parts or exporting product. Their product does share the furniture market with imports.
- __C___Traders speculating in foreign exchange trading in all currencies that are based in Malta.
- _C____Dockworkers at ports along the Italian coast that handle cargo coming into Italy
- ___B__Stockholders of a U.S. company that produces and sells its product only in the U.S. but compete with imports into the U.S. market.
- __B___ Mexican buyer machine parts from a German company for sale in Mexico.
- __A___German cookie company who sells their cookies only in the German market. Germany is in the European Union so its products must compete with other companies that import into the Germany market.
- __B___Politician in a town with one main factory whose product competes in the U.S. market with products from overseas and the company does not import any inputs.
I just wanted to check my answers. Do these look okay?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started