Question

A U.S. organic personal hygiene product manufacturer that exports toothpaste and deodorant made at its U.S. plants for shipment to the U.K. market:

A) is largely unaffected by fluctuating exchange rates. It would, however, be affected if its plants were in the U.K or other foreign countries.
B) is competitively disadvantaged when the U.S. dollar declines in value against the British pound.
C) has no interest in whether the dollar grows stronger or weaker versus the British pound unless it is competing only against companies located in the U.K.
D) becomes more competitive in the U.K. when the U.S. dollar declines in value against the British pound.

Answer 1

D) becomes more competitive in the U.K. when the U.S. dollar declines in value against the British pound.

Yes that's correct since is the dollar declines in value against the british pound he is making more money.

Step-by-step explanation:

A) is largely unaffected by fluctuating exchange rates. It would, however, be affected if its plants were in the U.K or other foreign countries.

That's False, since the exchange rates affect the exportations specially when we have a big exchange rate.

B) is competitively disadvantaged when the U.S. dollar declines in value against the British pound.

False, when the dollar declines in value against the British pound he have advantage since he is exporting and winning more money.

C) has no interest in whether the dollar grows stronger or weaker versus the British pound unless it is competing only against companies located in the U.K.

False, is important to the exporter the exchange rates always.

D) becomes more competitive in the U.K. when the U.S. dollar declines in value against the British pound.

Yes that's correct since is the dollar declines in value against the british pound he is making more money.