ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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domestic producers who export
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citizens traveling or living abroad from the United States
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German citizens vacation in the U.S.
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Canadian citizen looking to buy property in the U.S.
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Detailed explanation-1: -A strong dollar is good for some and relatively bad for others. With the dollar strengthening over the past year, American consumers have benefited from cheaper imports and less expensive foreign travel. At the same time, American companies that export or rely on global markets for the bulk of sales have been hurt.
Detailed explanation-2: -With an appreciation in the domestic currency, customers can take advantage of cheaper imports and increase their purchases. Domestic goods might become expensive, which will ultimately cause the imported goods to become cheaper on the foreign market.
Detailed explanation-3: -If the dollar appreciates (the exchange rate increases), the relative price of domestic goods and services increases while the relative price of foreign goods and services falls. 1. The change in relative prices will decrease U.S. exports and increase its imports.
Detailed explanation-4: -Cheaper imports: If American goods become more expensive on the foreign market, foreign goods, or imports, will become cheaper in the U.S. The length to which $1 will stretch will go further, meaning you can buy more goods imported from abroad.