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Will a domestic form, say a bicycle manufacturer, that sources, produces, and sells only in the U.S be impacted by FX fluctuation? i. Yes, if
Will a domestic form, say a bicycle manufacturer, that sources, produces, and sells only in the U.S be impacted by FX fluctuation? i. Yes, if the firm's product competes against imported bicycles. ii. Yes, because the firm's customers are comparing the cost and features of the domestic bicycles against imported foreign bicycles ili. No, because changes in exchange rates only affect firms that are directly engaged in international trade, but not purely domestic forms. iv. The domestic form will only be negatively impacted if the dollar is depreciating again the currencies whose countries export bicycles to the United States. O I, ll, and lv O Both landii
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