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Umnica [9.8K]
3 years ago
8

Which of the following businesses would prefer a strong U.S. dollar to a weak one?

History
1 answer:
Eddi Din [679]3 years ago
7 0

Answer:

An Egyptian company that exports clothing to the U.S.

Explanation:

The question above is related to "exchange rate." This refers to<u> the value or price of one currency in response to another currency.</u> This is largely determined by "supply" and "demand."

A strong U.S. dollar means that its value is relatively high when it comes to trading. So, this means that it has a high strength of buying more from the other currency than before. This makes the imports cheaper and the exports more expensive. This is the best time for a person to travel abroad.

So, among the choices above, the Egyptian company that exports its clothing to the U.S. will prefer a strong U.S. dollar to a weak one. This is because<u> the American people will find the Egyptian clothing cheaper,</u> thus strengthening their purchasing power. The Egyptian company will then be able to increase their sales.

So, this explains the answer.

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