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 G$ over time.
B. The F$ weakens against the D$ over time.
C. The D$ strengthens against the E$ over time.
D. The D$ weakens against the G$ over time.
Answer: A
