Country X has devalued its currency by 8 percent. Which U.S. business

QUESTION

Country X has devalued its currency by 8 percent. Which U.S. business structure engaged with Country X will realize the most benefit from this situation?

A) franchiser
B) licenser
C) subsidiary
D) importer
E) joint venture

ANSWER

Answer: D
Explanation: D) Prices for goods produced by Country X will decline relative to others in the global market. The importer’s costs will decrease. It can sell products for the original price or lower prices and sell more products—either way, its profits increase.