Because of international time lags between ordering and the receipt of goods, a depreciation of a currency:
a. will not change import or export volumes for a time, since prices on orders already placed cannot be renegotiated.
b. will immediately change import and export volumes, because buyers and sellers always include an opt-out clause.
c. will affect import and export volumes in third countries not party to the particular transaction.
d. will never change import or export volumes.
Ans: a. will not change import or export volumes for a time, since prices on orders already placed cannot be renegotiated.
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The usefulness and relative simplicity of the supply and demand model is often used
A. even though, strictly speaking, few industries in the U.S. are governed by perfect competition. B. because nearly every major industry in the U.S. is governed by perfect competition. C. because nearly every major industry in the U.S. is governed by monopoly. D. even though it has no connection to economic reality.
Which of the following may characterize a monopoly?
A. Low barriers to entry. B. Substantial market power. C. Many firms. D. Differentiated product.