Which of the Following Accurately Explains How Producers Are Affected

Multiple Choice

Which of the following accurately explains how producers are affected by exchange rate changes?

A) To save money, a manufacturer may decide to relocate production to a country with a stronger currency.
B) A manufacturing firm relocating to a country with a weak currency can make a cheap initial investment.
C) Goods manufactured in a country with a weak currency may be relatively expensive in world markets.
D) A manufacturer with high operating expenses would likely relocate production to a country with a currency that is gaining value.