The _______ is negatively exposed to the real value of the domestic currency.
A) classic exporter
B) classic importer
C) typical domestic firm
D) globally competitive firm
E) None of the above

Question

Quizplus · Accepted Answer

A classic exporter is negatively exposed to the real value of the domestic currency because if the domestic currency appreciates, their goods become more expensive for foreign buyers, potentially reducing demand.

The _______ Is Negatively Exposed to the Real Value of the Domestic