Question

Posh Pools Inc. was ready to sign an agreement to build a new facility in a foreign nation when it learned that the local currency in that nation had appreciated significantly in the past week. How might this affect the company's decision to build the new facility

Answer 1

Answer:

D. This will diminish the attractiveness of this country as a manufacturing base for Posh Pools.

Explanation:

Below are the given options of the question

A. There will be a decrease in the dollar cost of products exported from that nation which benefits Posh Pools.

B The company will want to make more foreign direct investment in that country.

C This will decrease the amount of imports brought into the country and make it more attractive for manufacturing

D This will diminish the attractiveness of this country as a manufacturing base for Posh Pools. E

This will transform the country into a low-cost location and make it more desirable for manufacturing.

Since it is mentioned that Posh Pools is ready to sign an agreement for building a new facility but this arise when he learned for the local currency so this impact the attractiveness of the country that would be decline and considered to be a base for manufacturing cost for the company i.e Posh pools

hence, the correct option is d.