Exercise 15.5

Exercise 15.5 a. b. C. d. e. f. Hint: Refer to the section in Chapter 15 titled "Exchange Rate Jargon," located under the EXCHANGE RATES heading and LO 15-4. In this section, they explain the difference between a "weak dollar" and "strong dollar."EXERCISE 15.5 Currency Fluctuations: Who Wins and Who Loses? Indicate whether each of the companies or individuals in the following independent cases would benefit more from a strong U.S. dollar (relatively low foreign exchange rates) or a weak U.S. dollar (relatively high foreign exchange rates). Provide a brief explanation of your reasoning. a. Boeing (a U.S. aircraft manufacturer that sells many planes to foreign customers). b. A Nikon camera store in Beverly Hills, California (Nikon cameras are made in Japan). c. Citroen (made by Peugot, an auto manufacturer in France). d. The Mexico City dealer for Caterpillar tractors (made in the United States). e. A U.S. tourist visiting England f. A small store that sells U.S.-made video recorders in Toledo, Ohio (the store has no foreign accounts receivable or payable)