What is a significant consequence of currency fluctuations in international trade?

Currency fluctuations have a profound impact on pricing and market access in international trade. When a country's currency appreciates, its goods become more expensive for foreign buyers, potentially leading to a decrease in exports. Conversely, if a currency depreciates, goods from that country become cheaper for international customers, which can increase exports but might raise the cost of imported goods. This fluctuation directly affects pricing strategies that businesses must adopt to remain competitive in global markets. Additionally, currency changes can influence market access; for instance, firms may decide to enter or exit certain markets based on the relative strength of their currency.

The option mentioning consistent pricing across all markets does not accurately reflect the reality of currency fluctuations, as these fluctuations create variances in pricing. Increased shipping costs can occur for various reasons such as changes in fuel prices or supply chain issues, but they are not a direct consequence of currency changes. Lastly, while currency fluctuations can impact consumer purchasing power and thus demand, they do not inherently lead to a reduction in consumer demand without considering other market factors.