The impact of fluctuating exchange rates on companies competing in foreign markets
A. are easy to predict in spite of the variety of factors involved and the uncertainties surrounding when and by how much these factors will change.
B. help domestic companies under pressure from lower-cost imports when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.
C. never change the pecking order consisting of which countries represent the low-cost manufacturing locations and which rivals have the upper hand in the marketplace.
D. always disadvantage domestic companies facing competitive pressure from lower-cost imports when their government's currency grows weaker.
E. always benefit domestic companies facing competitive pressure from lower-cost imports when their government's currency grows weaker.
Answer: E
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