The earnings per share of large U.S. technology companies are the highest in the world. How...
The earnings per share of large U.S. technology companies are the highest in the world. How does it affect the euro/dollar exchange rate?
Homework Answers
A hhigher return will attract more and more funds form the international market same for Euro, As more euro flows in the United states for buying the shares of large tech company that will lead to a higher demand for Dollar and dollar will appreciate and Euro will depreciate in the market.
When the earnings are send back to the European nations then that will depreciate the Dollar a little but not enough to lead to a lower value of Dollar.
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