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Mant Co is a manufacturing company operating in country Westland and it neither imports or exports.
If the currency of Westland strengthness with respect to onother currencies what is likely to effect on Mant’s Co sale?
Options:
Sale likely to increase
Sale likely to decrease
No effectThe correct answer is “sale likely to decrease”.
Could you please help me to understand it?
Thanks a lot
Gabbi
If your currency strengthens, imports will be cheaper. This produces more competition so your sales are likely to decrease.
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