The decline of the U.S.dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to:
A)Experience increasing sales in the U.S.
B)Experience increasing sales worldwide.
C)Locate plants in the U.S.to reduce overall manufacturing costs.
D)Require dealers to make payments in the Euro.
E)None of the above.

Question

Quizplus · Accepted Answer

When the U.S. dollar declines, it becomes more expensive for foreign companies to export to the U.S. By locating plants in the U.S., companies like BMW and Volkswagen can reduce costs associated with currency fluctuations and tariffs, making their products more competitive in the U.S. market.

The Decline of the U