The purchase of the rights to use another firm's technology in the scenario is known as outsourcing.
<h3>What is outsourcing?</h3>
It should be noted that outsourcing simply means the agreement in which a company hires another company in order to be responsible for certain activities.
In this case, this experienced when the firms purchase the rights to use another firm's technology.
Answer: The exchange rate pass through is 41.7 = 6.666666667%÷16%
Explanation:
Currently, from last year to the current year, there has been a 16% increase change in the exchange rate and a 6.667% change in the price. The exchange rate pass through is 41.7 = 6.666666667%÷16%
For every increase in 1% of the exchange rate, there has been a 41.7% increase in the current price of the DVD player.
