Exam CSCP topic 1 question 619 discussion

B : A weak local currency makes the exported goods relatively cheaper for buyers in foreign markets when converted into their stronger currencies. This can make the company's products more attractive and competitive compared to similar products produced in countries with stronger currencies.

When the local currency is weak compared to the currencies of the target export markets, it makes the cost of production (in terms of labor, materials, etc.) cheaper when converted into foreign currencies.

In many supply chain scenarios, having a stable local currency can be advantageous for cost competitiveness in exporting goods to world markets. A stable currency reduces the uncertainty associated with currency fluctuations, making it easier for companies to plan pricing, manage costs, and maintain stable profit margins in international markets. However, it's essential to recognize that the impact of currency exchange rates is just one aspect of cost competitiveness in global supply chains. Other factors such as production costs, market demand, trade agreements, and competition also play significant roles in determining a company's competitiveness when exporting goods. In practice, supply chain professionals often need to consider a combination of factors to make informed decisions related to global supply chain management.

D is for stability. If we are looking for costs, B is the correct answer. This could make exports more cost competitive, as locally produced goods would be cheaper for foreign buyers. This is the correct answer.

Is this C ?