Question detail
FreshFork serves tourists while improving quality control; the case evidence includes average order value of ?6,941, sales of 871 units, and a 20% change in costs or demand. Which option best applies Explain how exchange rates can affect profits and sales for businesses that export?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Globalisation
Question
- A. Use sales, profit, exchange rates to judge average order value, suppliers impact, and the business objective in Exchange rates.
- B. Give only a definition of Globalisation without using the case evidence.
- C. Treat internal and external finance as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use sales, profit, exchange rates to judge average order value, suppliers impact, and the business objective in Exchange rates.
Explanation
The answer is commercially strongest because Use sales, profit, exchange rates to judge average order value, suppliers impact, and the business objective in Exchange rates. The case evidence gives ?8,441, 871 units, and 20%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, miss the suppliers, or ignore the business objective.
Common mistake
Exchange rates common mistake 1
Giving a vague answer instead of directly addressing: Explain how exchange rates can affect profits and sales for businesses that export..
Answer by clearly explaining how to explain how exchange rates can affect profits and sales for businesses that export..
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