Asked by Aliyah Grant on Jul 17, 2024
Verified
US Exports
After staying around 1.35 US dollars per Euro for years,the exchange rate fell below 1.25 US dollars to a euro during the summer of 2014.What affect does this have US exports to Europe?
US Exports
Goods, services, or commodities sent from the United States to other countries for sale or trade.
Exchange Rate
The exchange rate is the price at which one currency can be exchanged for another, influencing international trade and investments.
US Dollars
A form of currency recognized and utilized worldwide, characterized by its representation of the American economy.
- Analyze how variations in the value of currency influence international trading and the tourism sector.
Verified Answer
YL
Yunying LiangJul 23, 2024
Final Answer :
The demand for American goods by Europeans will fall because it takes more euros to convert into a given number of dollars to make a purchase.Likewise,Americans considering European goods now have to convert less dollars into euros to make purchases there.Both effects decrease US exports.
Learning Objectives
- Analyze how variations in the value of currency influence international trading and the tourism sector.