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Just-for-Kids, Inc

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Just-for-Kids, Inc., is a toys and clothes manufacturer based in San Diego, California. The company has received an inquiry from an overseas company to do business. Tom Dodd is the owner of the company researching the opportunity and how exchange rates will affect its international business activities.

If Just-for-Kids is selling in a country with a strong currency while sourcing from a country with a weak currency, it will most likely:

A) improve its profits

B) face U.S. government penalties

C) generate losses

D) engage in unethical conduct