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balandron [24]
3 years ago
10

An Italian exporter of designer clothes who sells products in the United States has gained a price advantage because the euro is

weakening in relation to the dollar. What is a good strategy for dealing with this​ situation?
Business
1 answer:
allochka39001 [22]3 years ago
6 0

Answer:

the exporter can maintain the prices and just expand his fashion line.

Explanation:

Since the euro is weakening to the dollar, it means he gets more profit than before so he could just enjoy the advantage and increase his fashion export line to other markets in the united states that he is not already present in.

i hope this helps.

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\frac{\Delta Q}{\Delta Y} \frac{Y}{Q}=0.2\frac{501}{1300}=0.077

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