Which of the following businesses would prefer a strong U.S. dollar to a weak one?
a U.S. company that exports cars to Mexico
a French company that imports clothing from the United States
a U.S. company that imports bananas from Costa Rica
an Indian company that imports computers from the United States
I have no idea with this one because I can't find stuff in my notes
http://www.google.com/#q=strong+dollar+hurt+exports
Okay, based on the info you gave me I think it's C, is that correct?
Yes, I think so.
http://www.jiskha.com/display.cgi?id=1432916111
To determine which businesses would prefer a strong U.S. dollar to a weak one, let's analyze the situations of each company:
1. A U.S. company that exports cars to Mexico: In this case, a strong U.S. dollar would be preferable. When the U.S. dollar is strong, it can buy more Mexican pesos, which means the U.S. company will receive more pesos for each car it exports to Mexico. This makes their cars more expensive for Mexican consumers, potentially reducing demand. However, since the question asks which company would prefer a strong U.S. dollar, we can infer that this company benefits from the exchange rate favoring them.
2. A French company that imports clothing from the United States: In this case, a weak U.S. dollar would be preferable. When the U.S. dollar is weak, it takes more French euros to buy the same amount of dollars, making the imported clothing relatively more expensive in terms of euros. This may reduce the demand or profit margin for the French company.
3. A U.S. company that imports bananas from Costa Rica: In this case, a weak U.S. dollar would be preferable. Similar to the previous example, a weak U.S. dollar reduces the purchasing power of the dollar, making the imported bananas relatively more expensive. This may have a negative impact on the cost and profitability of the U.S. company.
4. An Indian company that imports computers from the United States: In this case, a strong U.S. dollar would be preferable. When the Indian rupee is converted into a strong U.S. dollar, the Indian company will be able to purchase more dollars, allowing them to import computers at a more favorable exchange rate and potentially reducing the cost of their imports.
In summary, the U.S. company exporting cars to Mexico and the Indian company importing computers from the United States would prefer a strong U.S. dollar, whereas the French company importing clothing from the United States and the U.S. company importing bananas from Costa Rica would prefer a weak U.S. dollar.