How does a stronger dollar affect your industry

Assignment Help Business Economics

Reference no: EM133473186

Question 1. In 2014, the euro was trading at $1.35 per euro on the foreign exchange market. By 2015, the rate had fallen to $1.10 per euro due to falling European interest rates. Did this fall in the price of a euro occur due to a shift in the supply curve, the demand curve, or both? Please provide a figure that illustrates this change in the price of the euro.

Question 2. Changes in the per-dollar exchange rate have opposing impacts on importers and exporters in the US market. If the dollar strengthens (e.g., euros-per-dollar exchange rate increases), then goods imported from other countries become more affordable for US buyers. In contrast, if the dollar weakens (e.g., euros-per-dollar exchange rate decreases), then US good exported to other countries become more affordable for foreign buyers. Does your industry rely more on imported inputs or export sales? How does a stronger dollar affect your industry? What actions could your firm take to protect profits in response to a stronger dollar? Please explain your responses.

Reference no: EM133473186

Questions Cloud

Justify your creation in terms of its practicality : Justify your creation in terms of its practicality and ability to satisfy current need. Be creative and identify how concepts are used in the design of product.

How was it an improvement on the articles : How was it an improvement on the Articles of Confederation? What provisions of the Constitution allowed slavery to survive and flourish

Positive or negative aspect of organizational communication : Describe your motivation in this situation. Do you think unions are a positive or negative aspect of organizational communication? Why?

Discuss the four schools of criminology : Discuss and give an example of how each of the four schools of criminology will influence the career of a Probation Officer.

How does a stronger dollar affect your industry : Did this fall in the price of a euro occur due to a shift in the supply curve, the demand curve, or both? Please provide a figure that illustrates this change

How do erp crm systems generate forecasting analyses : How do ERP CRM Systems generate forecasting analyses of product consumption based on critical variables such as geographical area, season and day of the week.

Explain why you choice the order that you did : number the items in order of importance (1 being the most important and 5 being the least important). Explain WHY you choice the order that you did

What ethical decisions would you make for her incarceration : What ethical decisions would you make for her incarceration, rehabilitation, and reintegration? Provide rationale.

Why might an organization use the word and pdf approach : Why might an organization use the Word and PDF approach rather than GRC software, and vice versa?

User Account

All Pages