Which of the following changes would be most likely to help the company achieve its objective?

A company based in Country D, whose currency is the D$, has an objective of maintaining an operating profit margin of at least 10% each year.

Relevant data:

• The company makes sales to Country E whose currency is the E$. It also makes sales to Country F whose currency is the F$.

• All purchases are from Country G whose currency is the G$.

• The settlement of all transactions is in the currency of the customer or supplier.

Which of the following changes would be most likely to help the company achieve its objective?
A . The D$ strengthens against the E$ over time.
B . The F$ weakens against the D$ over time.
C . The D$ strengthens against the G$ over time.
D . The D$ weakens against the G$ over time.

View Answer

Answer: C