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A company selling in a country with a strong currency while sourcing from a country with a weak currency ________. Group of answer choices improves its profits

Sagot :

A company's revenues increase when it sells in a country with a strong currency while sourcing from a country with a weak currency.

A weak currency is a country's currency that has lost value in contrast to other currencies. Weak currencies are frequently associated with countries that have poor economic foundations or governance systems. A country looking to increase its exports in global markets may also favor a weak currency.

A strong currency is one whose worth relative to other currencies is increasing, as seen by a drop in the currency's direct exchange rates.

When an exchange rate changes, the value of one currency rises while the value of the other falls. A currency is considered to have appreciated when its value rises. When the value of a currency falls, however, it is said to have depreciated.

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