Post Utme Lead City University 2024 Commerce Question 32

Practice objective / multiple choice question 32 from the 2024 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2024 Commerce Objective / Multiple Choice
Question 32 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A company's foreign trade activities are affected by the following factors: exchange rates, political stability, and cultural differences. Which of the following is a correct statement regarding the impact of exchange rates on a company's foreign trade activities?

Answer Options

A. Exchange rates have a direct impact on a company's foreign trade activities, as they affect the cost of imports and exports.
Correct Answer B. Exchange rates have an indirect impact on a company's foreign trade activities, as they affect the competitiveness of domestic goods in the global market.
C. Exchange rates have no impact on a company's foreign trade activities, as they are determined by the supply and demand of currencies.
D. Exchange rates have a negative impact on a company's foreign trade activities, as they increase the cost of imports and reduce the competitiveness of domestic goods.
Correct Answer
B
Correct Option:
Exchange rates have an indirect impact on a company's foreign trade activities, as they affect the competitiveness of domestic goods in the global market.

About This Question

This is Post Utme Lead City University 2024 Commerce Question 32. It is one of the objective questions from the 2024 Post Utme Lead City University Commerce examination.

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