Research Indicates That the Optimal Plan for Exporter Firms to Follow

Multiple Choice

Research indicates that the optimal plan for exporter firms to follow when the currency of a country depreciates is to

A) only increase the price of the good or service being exported in the foreign country relatively to the percentage of the depreciation.
B) only increase the price of the good or service being exported in the foreign country by the full percentage of the depreciation.
C) maintain a given foreign currency price in order to maintain its market share while losing some profit.
D) increase a given foreign currency price in order to maintain its profit while losing sales to foreign rivals.