When assessing injury, currency fluctuations should be evaluated to determine if they independently explain injury or interact with import intensity.

• A. They are ignored in all analyses.
• B. They are assumed to be the sole cause.
• C. They are evaluated to determine if they independently explain injury or interact with import intensity.
• D. They are used solely to adjust currency risk weighting.

Answer: (C)

Currency movements can change import prices, the competitive position of domestic producers, and demand conditions, so they may cause injury on their own or alter how import intensity affects injury. In an injury assessment, you test whether these fluctuations independently explain the injury or interact with import intensity, meaning they modify the impact of import competition. This approach helps separate macroeconomic currency effects from the direct effects of imports, ensuring attribution isn’t overstated or misattributed. It’s not appropriate to ignore currency factors, to assume they are the sole cause, or to treat them only as a tool for adjusting currency risk weighting. The best practice is to evaluate both the independent impact and any interaction with import intensity.