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If the dollar increases in value against your research country currency (it takes more foreign currency to buy one dollar, or said another way, it

If the dollar increases in value against your research country currency (it takes more foreign currency to buy one dollar, or said another way, it takes less dollar to buy one unit of foreign currency)

  • will it make US exports to your research country more or less attractive to residents of your research country? Why?
  • will it make US imports from your research country more or less expensive to US residents? Why?

Think about it in the reverse. If the dollar decreases in value against your research country currency (it takes less foreign currency to buy one dollar, or said another way, it takes more dollars to buy one unit of foreign currency)

  • will it make US exports to your research country more or less attractive to residents of your research country? Why?
  • will it make US imports from your research country more or less expensive to US residents? Why?

Do you think a strong dollar is a good thing or a bad thing? Briefly explain why? (Note this is a hotly debated issue; politicians, industry, and academics often have differing views; I want you to think about it and give me your view).

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