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A fictional business, 'Auto Parts Ltd', imports raw materials from overseas. If the domestic currency strengthens against the currency of the exporting country, what is the most likely impact on Auto Parts Ltd's costs?.
- A.Import costs will increase, leading to higher overall costs.
- B.Import costs will decrease, leading to lower overall costs.
- C.Export costs will increase, but import costs will remain stable.
- D.Both import and export costs will remain unchanged.
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