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Most of your competitors rely on inputs produced domestically, but you have developed global supply chains and now half of your inputs come from abroad.

Most of your competitors rely on inputs produced domestically, but you have developed global supply chains and now half of your inputs come from abroad. You and your foreign suppliers have signed contracts with long- term price guarantees denominated in the foreign currencies. Your competitors plan to raise prices next year by an average of 2.5%, but the dollar has appreciated so it is possible that you could: raise prices by less than 2.5%. I raise prices by more than 2.5%. switch to domestically produced inputs. not change your prices at all if the impact of appreciation is less than 2.5%

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