APICS Certified Supply Chain Professional (CSCP) — Question 267

Companies with manufacturing facilities in one country are more cost-competitive in exporting goods to world markets when:

Answer options

• A. the local currency is strong.
• B. the local currency is weak.
• C. the local currency is stable.
• D. the local currency is pegged to the target market.

Correct answer: B

Explanation

A weak local currency makes exports cheaper for foreign buyers, enhancing the competitiveness of companies in global markets. Conversely, a strong currency would increase export prices, reducing competitive edge, while stability and pegging to a target market do not directly affect cost competitiveness in the same manner.