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A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2024 · Q241 Mark

Which circumstances would most help a firm to gain from a depreciation of the exchange rate?

AIt sells mainly abroad and relies on domestic suppliers for inputs.
BIt sells mainly abroad and relies on foreign suppliers for inputs.
CIt sells mainly in its home market and relies on domestic suppliers for inputs.
DIt sells mainly in its home market and relies on foreign suppliers for inputs.

✓ Correct answer

A: It sells mainly abroad and relies on domestic suppliers for inputs.

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About this question

Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2024 Paper 1 Variant 2, question 24.

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