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When It Is Unclear Whether a Currency Depreciation Is Permanent,exporters

Question 4

Multiple Choice

When it is unclear whether a currency depreciation is permanent,exporters may choose not to raise their prices,especially if they fear losing market share in markets with existing production and distribution facilities.This is known as the:


A) market share effect.
B) beachhead effect.
C) pass-through effect.
D) parity effect.

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