When the US Dollar is strong, this means that while US Exportersthe US consumersa)find it difficult to compete internationally; see increased prices in importedgoods.O b) become internationally competitive; enjoy cheaper imports.Oc) become internationally competitive; see increased prices in imported goods.d) find it difficult to compete internationally; enjoy cheaper imports.

International trade: - it means the buying and selling of goods and services with other countries.

When the US Dollar is strong, this means that while US Exporters the US consumers a) find it difficult to compete internationally; see increased prices in imported goods. b) become internationally competitive; enjoy cheaper imports. Oc) become internationally competitive; see increased prices in imported goods. d) find it difficult to compete internationally; enjoy cheaper imports.

When the US Dollar is strong, this means that while US Exporters the US consumers a) find it difficult to compete internationally; see increased prices in imported goods. b) become internationally competitive; enjoy cheaper imports. Oc) become internationally competitive; see increased prices in imported goods. d) find it difficult to compete internationally; enjoy cheaper imports.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

See similar textbooks

Similar questions

45) Assume that Outland specialises in producing skateboards and Inland specialises in producing surfboards. After trade, Outland exports 500 skateboards and imports 100 surfboards. The rate of exchange A) is 1/5:1 skateboards to surfboards. B) is 5:1 skateboards to surfboards. C) is 1:5 skateboards to surfboards. D) cannot be determined from this information
If Slovenia exports cloth, then if it increases its production of cloth due to economic growth biased toward cloth, this would O A) decrease its marginal propensity to consume. B) have no effect on its terms of trade. C) improve its terms of trade. D) increase its exports. E) harm its terms of trade.
In our pretend world there are two countries - Chile and Switzerland - that are engaged in trade. The firm Switzerland Chocolates Express sells Boxes of chocolate (a good) in Chile. Each Box of Chocolates sells for 6500 Chilean pesos in Chile. In Switzerland, each box of chocolates 11 Swiss Franc to produce. Assume that the firm has 1 million boxes of chocolate to sell. How much money (in Swiss Franc) would the firm make (or lose) on the sale at the following exchange rates: Rate 1: 550 Pesos per Swiss Franc Rate 2: 0.0015 Swiss Franc Per Chilean Peso
Use the following graph, which shows the supply and demand curves for dollars in the pound/dollar market, to answer the next question. Pound Price of Dollars 1/4 1/5 O Q₁ M D₁ D₂ Q₂ Q3 Quantity of Dollars D₂ Assume that D1 and S1 are the initial demand for and supply of dollars. Now suppose that Great Britain increases its imports of American products. Assuming freely-floating exchange rates, A) the dollar price of pounds will increase to $5 = 1 pound B) the pound price of dollars will rise to 1/4 pound = $1
If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices, and Japanese demand for American exports increases at the same time, then, inthe long run ________, everything else held constant.a) the Japanese yen will appreciate relative to the U.S. dollarb) the Japanese yen will depreciate relative to the U.S. dollarc) the Japanese yen will either appreciate, depreciate or remain constant against the U.S. dollard) there will be no effect on the Japanese yen relative to the U.S. dollar
Polikesa, a country in North Africa, has vast reserves of uranium. However, due to strict business laws in Polikesa, most international firms are skeptical of starting mining operations in the country Which of the following techniques can Polikesa use to attract foreign investment? O By nationalizing all industries O By following a fixed exchange rate O By increasing its imports O By making regulatory reforms
b) Suppose that the current spot exchange rate of U.S. dollars for Australian dollars, Suss/As is 0.757 (i.e. $0.757 US dollar can be received for 1 Australian dollar). The price of Australian-produced goods increases by 5 percent (i.e. inflation in Australia, IPA, is 5 percent), and the U.S. price index increases by 3 percent (i.e. inflation in the United States, IPus, is 3 percent). Calculate the new spot exchange rate of U.S. dollars for Australian dollars that should result from the differences in inflation rates.
Trade Surplus O occurs when the value of imported products exceeds the value of exported products occurs when the value of exported products exceeds the value of imported products O the price of one country's currency in terms of another country's currency O system under which the forces of supply and demand establish the value of one country's currency in terms of another country's currency
need answer . absuletly upvote !!!! 1) Consider the dollar-yen exchange market, where the exchange rate represents the dollar price of one yen. The US is the demand side of the market and Japan is the supply side. In each of the following cases determine whether the exchange rate increases or decreases: a) per capita income in the US increases b) per capita income in Japan increases c) US inflation is greater than Japan's inflation d) there is an increase in US interest rates.
If the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the O a. quantity of U.S. dollars demanded decreases. O b. quantity of U.S. dollars demanded increases. O c. supply of U.S. dollars increases. O d. demand for U.S. dollars decreases. О е. demand for U.S. dollars increases.
Assume that China places a strict quota on goods imported from the U.S. and that the U.S. does not retaliate. Holding other factors constant, this event should immediately cause the Chinese demand for U.S. dollars to ____ and the value of the dollar to ____. A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase
If Italian demand for Canadian lumber decreases, the supply of Canadian dollars to the foreign-exchange market will and the demand for euros will therefore O A. increase; increase O B. decrease; increase OC. decrease; decrease O D. remain the same; remain the same E. increase; decrease