Which of the Following Statements Concerning the Effects of Fluctuating

Multiple Choice

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?

A) Fluctuating exchange rates pose no significant risks to a company's competitiveness in foreign markets.
B) Competitive advantages of manufacturing goods in a particular country are largely unaffected by fluctuating exchange rates.
C) Exporters are advantaged when the currency of the country where goods are being manufactured grows stronger.
D) Exporters always gain in cost/price competitiveness when the currency of the country in which the goods are manufactured is weak.
E) Exporters always lose in cost/price competitiveness when the currency of the country in which the goods are manufactured is weak.