Why is the exchange rate important in global markets?
A) If the value of the dollar is high, the products of foreign producers are more expensive because it takes more dollars to buy them
B) To earn the highest amount of profit the trading currency must remain low and stable
C) Labor costs can vary considerably as currency values shift
D) The exchange rate is unimportant in global markets

Question

Quizplus · Accepted Answer

Exchange rates affect labor costs as they can influence the cost of hiring and paying workers in different countries, impacting global market operations.

Why Is the Exchange Rate Important in Global Markets