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......The firm purchases supplies from other countries
The firm that purchases supplies from other country has very little to loose if it experiences an increase in the value of its domestic currency. However, if the company is old and has rigid management structures; than, innovation decreases with the age of the organization and with it the performance of its research and development department (Lewin and Massini, 2003). On the other hand, newer organizations tend to display a more flexible management structure and have lesser hierarchies. This allows them to change and adapt according to the changes in the external environment. They continue to transform the innovation introduced with their products and services, which ultimately augments their overall corporate performance. On the other hand, old organizations have problems in adapting rapidly owing to their large bureaucratic structure (Lewin and Massini, 2003). If these old companies face competition from newer entries in the market that too are importing from abroad, then these old companies may confront problems in the near future
The firm sells products domestically and in other countries
For a firm that sells domestically, as well as in other countries, it might confront tougher competition (1) from importers in the

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