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Why does a U.S. company exporting wooden furniture manufactured in Malaysia to the European Union benefit from the decline in the value of ringgit against the euro?
Because decline in the value of ringgit against euro raises the cost of furniture manufactured in Malaysia, making it less competitive in European markets
Because decline in the value of ringgit against euro reduces the cost of furniture manufactured in Malaysia, making it more competitive in European markets
Because decline in the value of ringgit against euro has no impact on the cost of furniture manufactured in Malaysia, both in Malaysian or European markets
Because decline in the value of ringgit against euro makes European goods more competitive as compared to Malaysian goods
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Learning curves show:
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