A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets:
A. is competitively disadvantaged when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.
B. is largely unaffected by fluctuating exchange rates. It would, however, be affected if its plants were in foreign countries.
C. becomes more competitive in foreign markets when the U.S. dollar gains in value against the currencies of the countries to which it is exporting.
D. becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.
E. has no interest in whether the dollar grows stronger or weaker versus foreign currencies unless it is competing only against companies located in foreign countries.
Answer: becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.