Which of the following global changes could explain the increase in the 2004 expense ratio for Zahra’s Coffee Imports Pty Ltd? (A) A depreciation of the Australian dollar (B) An appreciation of the Australian dollar (C) Widespread dumping of coffee due to excess supply (D) A new free trade agreement with one of the countries supplying this company - HSC - SSCE Business Studies - Question 5 - 2004 - Paper 1

An appreciation of the Australian dollar would reduce the cost of imports, which would likely decrease the expense ratio. Therefore, this option does not explain the increase in the expense ratio.

Widespread dumping refers to selling goods in a foreign market at low prices. This scenario would likely lower costs for Zahra’s Coffee Imports, leading to a decreased expense ratio rather than an increase.

A new free trade agreement would typically reduce tariffs and costs associated with imports. As such, this would not explain an increase in the expense ratio; it would likely have the opposite effect.