While deciding a location for a manufacturing base, which of the following can be directly determined by organizations based on the foreign exchange rate of a country's currency?
A) potential competition
B) product fit
C) demands for a product
D) costs of production

Question

Quizplus · Accepted Answer

The foreign exchange rate of a country's currency directly affects the cost of production because it determines the cost of importing raw materials and exporting finished products. Therefore, organizations can use the foreign exchange rate to determine the costs of establishing a manufacturing base in a particular country. The other options (A, B, and C) are not directly determined by the foreign exchange rate of a country's currency.

While Deciding a Location for a Manufacturing Base, Which of the Following