Question

Suppose you’re the owner of a business in Minnesota that manufactures electronic components, and half your sales are in Brazil. Do you want to see the U.S. dollar get stronger, or do you want it to get weaker?  Check one answer, and then explain your reasoning:

oYou want the dollar to get dollar stronger      oYou want the dollar to get weaker

Briefly explain:

12.You’re the owner of a manufacturing firm in India that exports kitchen equipment to the U.S.  Do you want to see the U.S. dollar get stronger, or do you want it to get weaker? Check one answer, and then explain your reasoning:

oYou want the dollar to get dollar stronger      oYou want the dollar to get weaker

Briefly explain:

13.You work for a Wisconsin retail furniture chain that imports most of its furniture from China, and then sells the furniture in its Wisconsin stores. Do you want to see the U.S. dollar get stronger, or do you want it to get weaker?  Check one answer, and then explain your reasoning:

oYou want the dollar to get dollar stronger      oYou want the dollar to get weaker

Briefly explain:

Answer 1

a) As an exporter in an US state I want the Dollar to be weaker. it will make the product sold to Brazil much more cheaper and increase the exports. The weaker the dollar the more the exports will rise as these goods will be cheaper in world market increasing the sales.

b) As an exporter in India I want the Dollar to get stronger. A strong Dollar means a week Indian Rupee. Week Indian Rupee will strengthen the exports are the kitchen equipment sold to the US having a strong dollar will make the products cheaper for the US consumer and that will increase the export.

c) As an importer We want an strong Dollar. it will make the imports cheaper and at a cheaper imports Cheaper imports means more demand for the goods in the US.