Assume foreign currencies are strong in real terms, why would this be the best time to enter the market of a foreign country as an exporter to that market?
What will be an ideal response?
Answer: Firms often introduce new products in foreign markets when the foreign currencies are strong in real terms. Doing so allows a firm to set a comparatively low foreign currency price for a product so that it can better compete and become an established player in the market. This strategy allows the firm to develop loyal customers who will then potentially tolerate increases in the foreign currency price that the exporter feels compelled to introduce when the foreign currency eventually depreciates relative to the exporter's currency.
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The per-unit selling price of a product is $20, the unit variable cost is $15, and the total fixed costs are $7,000 . What are the current break-even sales in units and dollars, respectively?
a. 467 and $28,000 b. 467 and $5,250 c. 1,400 and $5,250 d. 1,400 and $28,000
In return for their right to recover for work related injuries on the job, employees give up the right to bring what kind of claims against their employers?
A. workplace claims B. negligence claims C. work related claims D. accidental claims E. injury claims
Which of the following statements about a consumer is FALSE?
a. Consumers have similar tastes b. All of these statements about consumers are true c. A consumer receives a personal benefit from the product d. A consumer is a person with unmet needs e. A consumer purchases things for personal consumption
Prior to the Basel Agreement, capital requirements were established without regard to:
a. the bank's liquidity risk. b. the bank's asset quality. c. the size of the bank's assets. d. the bank's operational risk. e. the bank's interest rate risk.