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Economics (AS & A Level) · Oct / Nov 2024 · Paper 12 · Question 24

9708Exchange rates

Which circumstances would most help a firm to gain from a depreciation of the exchange rate?

  1. AIt sells mainly abroad and relies on domestic suppliers for inputs.
  2. BIt sells mainly abroad and relies on foreign suppliers for inputs.
  3. CIt sells mainly in its home market and relies on domestic suppliers for inputs.
  4. DIt sells mainly in its home market and relies on foreign suppliers for inputs.

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Correct answer: A. It sells mainly abroad and relies on domestic suppliers for inputs.

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