According to the following exchange rate history between 1 USD to the Euro, in 2

Question

According to the following exchange rate history between 1 USD to the Euro, in 2012, the exchange rate between 1 USD to Euro is 1:0.75; today, the exchange rate between 1 USD to Euro is 1:0.95. which of the following statement is correct due to the currency fructuation? 1.0 0.9 0.8 0.7 2012 2013 2014 2015 2016 O A. O B. ° C. ( D. In 2016, the US based multinational companies suffer revenue and profit lost for their business in Europe. European firms pay less for their imports from the United States thank they did in 2012. It is more expensive for American to travel in European countries in 2016 than in 2012. In 2016, the American companies can increase their export to Europe without dropping the sales price.

Explanation / Answer

Answer.) D.) In 2016, the american companies can increase their export to europe witho dropping the sales price.

Domestic currency depreciation helps in export promotion as domestic goods becomes relatively cheaper than foreign goods.

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