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Question 17 (1 point) of the firm will Economic exposure is based on the extent to which the change when exchange rates change. a) Value b) Current assets c) Long-term liabilities d) Competitive advantages. Question 18 (1 point) The the price elasticity of demand, the price and thereby expand sales. the incentive to hold down a) Lower, greater b) Lower, lower c) Greater, lower d) Greater, greater QuesLIUI 1711 PULL The appropriate response for a U.S. exporter to depreciation of the dollar would be to a) Raise the foreign currency price if the dollar depreciation was expected to be temporary and the cost of losing market share was minimal b) Move some production offshore if the depreciation were expected to persist for an extended period c) Lower the foreign currency price constant if demand is quite inelastic d) Set up a netting center in the home country Question 20 (1 point) Which one of the following would NOT be an appropriate response for a U.S. exporter to appreciation of the dollar? Raise the foreign currency price if the dollar appreciation was expected to be temporary and the cost of regaining market share was minimal 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