Answer:
The correct answer is option D.
Explanation:
A depreciation of domestic currency implies a decrease in the relative value of a domestic currency. This means that the products of the firm will become relatively cheaper for foreign consumers.
This will increase the sale of the products in the foreign market.
A depreciation of the currency will increase sales in the domestic market because the foreign goods will become more expensive for domestic consumers. So the domestic consumers will substitute the imported goods for domestically produced goods. As a result, the sales of the firm in the home market will increase as well.
