Which of the following statements concerning currency exchange rates is most accurate?
A) Fluctuations in exchange rates among the world's currencies are of critical importance in global marketing.
B) Fluctuations in exchange rates among the world's currencies occur, but multinational companies are insulated from the effects because of direct investment.
C) Exchange rate fluctuations are relatively rare, but when they occur, their effects are minimal.
D) Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro.
E) Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.

Question

Quizplus · Accepted Answer

Fluctuations in exchange rates among the world's currencies are of critical importance in global marketing as they can affect the pricing, profitability, and competitiveness of products and services in international markets. Companies need to carefully monitor and manage currency risks to avoid potential losses and maximize their returns on investment.

Which of the Following Statements Concerning Currency Exchange Rates Is