Question
Consider a plant in China. All of your cars are sold in China, but steel and other items are priced in U.S. dollars. Which of
Consider a plant in China. All of your cars are sold in China, but steel and other items are priced in U.S. dollars. Which of the following is true.?
A) The strengthening CNY vs the USD will improve the profitability of the plant.
B) The weakening CNY vs the USD will improve the profitability of the plant.
C) There is no currency risk if you are not exporting cars from China.
D) The plant should shift all of its costs to USD to protect against currency risk.
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What Environmentalists Need To Know About Economics
Authors: Jason Scorse
1st Edition
0230107311, 9780230107311
