Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Under which circumstances would a firm be most likely to benefit from a depreciation of the exchange rate?

  • AIt sells mainly abroad and relies on domestic suppliers for inputs.
  • BIt sells mainly abroad and relies on foreign suppliers for inputs.
  • CIt sells mainly in its home market and relies on domestic suppliers for inputs.
  • DIt sells mainly in its home market and relies on foreign suppliers for inputs.

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