Question

An depreciation of the U.S. dollar yields the average American resident to be relatively less wealthy compared to people living in other countries. It also means that American residents have now less purchasing power compared to other countries. Explain briefly why a depreciating U.S. dollar does not hurt everyone in the U.S.! In other words: who benefits within the united states from a depreciating U.S. Dollar and why? (Max 50 words!)

Answer 1

Answer:

Those who sell their goods and services abroad benefit from devaluation.

Explanation:

The firms and people who sell their goods and service abroad benefit from a US Dollar devaluation. Since their products are sold abroad, a devaluation increases the competitiveness of their offer compared with other countries, making more attractive their offer because they sell the same quality and value at a lower price