$13$

Multiple Choice

$1$ point

A company with multiple global offices sets all its prices from their headquarters in Rome $($Italy$).$ All the prices are set in $$ Euro, and when setting prices in their own markets country managers convert the prices to their local currencies at prevailing rates. In Namibia the exchange rate is $1$ to $$16.$ If the Euro were to strengthen $($i$.$e$.$ gain in value$)$ it would be:

neither favorable nor unfavorable turn of events for the company in Namibia.

an unfavorable turn of events for country managers in Namibia as their products will become more expensive for their customers.

a favorable turn of events for the country managers in Namibia as their products will become cheaper for their customers.

a favorable turn of events since the revenues in Namibia will increase