Just-for-Kids, 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 aff

D) Revaluation. If a nation raises the value of its currency, it is called a revaluation. Revaluation occurs when a country's central bank intervenes in the foreign exchange market by buying or selling its currency to increase its value relative to other currencies. This makes the country's exports more expensive, but imports cheaper. In the context of the given scenario, if the overseas company's currency were to increase in value relative to the U.S. dollar, Just-for-Kids, Inc.'s exports would become more expensive for the foreign buyer, making the deal less attractive. Therefore, Tom Dodd needs to consider exchange rate fluctuations and take exchange rate risk management measures, such as hedging or using forward contracts, to minimize the impact of currency fluctuations on the company's profits.