In the mid-2000s, a Swiss cheese maker blamed its decline in U.S. sales on:
A) the fall of the euro in terms of the Swiss franc.
B) the rise of the euro in terms of the Swiss franc.
C) German tariffs that made the cheese more expensive.
D) the Euro area recession.

Question

Quizplus · Accepted Answer

If the Swiss franc appreciated in value while the euro appreciated at a faster rate, then it would become more expensive to import Swiss cheese into the U.S. This would lead to a decline in sales for the Swiss cheese maker. Therefore, option B is the best choice.

In the Mid-2000s, a Swiss Cheese Maker Blamed Its Decline