Future Business Leaders of America (FBLA) Agribusiness Practice Test

What was a contributing factor to the currency changes affecting the pig industry?

1. Increased feed costs

2. Competing countries not adopting welfare standards

3. Declining domestic consumption

4. Improvements in veterinary care

The correct answer is: Competing countries not adopting welfare standards

The impact of currency changes on the pig industry can often be influenced by international trade dynamics and competitive practices. Competing countries not adopting welfare standards can lead to an uneven playing field in the global market. Countries that maintain high welfare standards typically incur higher production costs, which can affect pricing and competitiveness. On the other hand, if competing countries do not adhere to the same welfare standards, they may be able to produce pork at a lower cost. This cost disparity can change trade flows and pricing structures in the global market, significantly influencing the currency exchange rates in relation to the pig industry. Consequently, countries that prioritize animal welfare may find their exports becoming less competitive, impacting currency value and market dynamics.