Asked by Michelle Bradley on May 06, 2024
Verified
The less a foreign currency costs in U.S. dollars, the less expensive that nation's products are when imported and offered to U.S. buyers regardless of their cost in the country of origin.
Foreign Currency
Currency used in a country other than one's own, necessitating exchange for transactions or investments in foreign markets.
- Realize the relationship between the strength of a currency and its impact on international trade and investment.
Verified Answer
EM
estrella maldonadoMay 09, 2024
Final Answer :
True
Explanation :
When a foreign currency costs less in U.S. dollars, it means that the U.S. dollar is stronger compared to that currency. This makes the products from that country cheaper when imported and offered to U.S. buyers. Even if the cost of goods remains the same in the country of origin, the exchange rate makes them more affordable for U.S. consumers.
Learning Objectives
- Realize the relationship between the strength of a currency and its impact on international trade and investment.