Why is it important for an exporter to understand the distinction between a temporary change in the exchange rate and a permanent change in determining whether to respond to a real depreciation of the home currency with increased production or sales
out of inventories?
Exporters benefit when their home currencies depreciate in real terms. If the depreciation is temporary, drawing down inventory stocks without changing the production process can meet the short-term increase in demand in the lowest cost way. The more permanent is the perception of the real depreciation, the more likely it is that the firm's demand will be permanently higher, in which case it is more appropriate to increase production as this is the lowest cost long-run response.
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Answer the following statements true (T) or false (F)
1. Nonverbal messages are often more convincing than verbal messages. 2. A candidate being turned down for a job primarily because he did not make eye contact shows how words are more important than actions. 3. Pushing the “like” button under an Instagram photo is an example of the complementing function of nonverbal communication. 4. We use nonverbal messages to manage the flow of verbal communication. 5. Saying “No” while shaking one’s head from side to side is an example of substituting.
The most effective strategy for moving from a competitive to a cooperative situation requires members:
a. Always acting cooperatively b. Always acting competitively c. Start by acting cooperatively then respond in kind to the other person’s move d. Acting cooperatively only if rewarded to do so
Being the overall low-cost provider in an industry has the attractive advantage of
A. giving the firm a very appealing brand image. B. building strong customer loyalty and locking customers into its product because customers have high switching costs. C. putting a firm in the best position to win the business of price-sensitive customers and earn profits by setting the floor on market price. D. putting the company in a strong position to be more profitable than companies pursuing a differentiation strategy. E. greatly reducing the strong bargaining power of rivals with the key distributors.
The Zangger Committee is also known as Non-Proliferation Treaty Exporters' Committee
Indicate whether the statement is true or false