Assume the Chilean peso is decreasing in exchange value compared to the U.S. dollar. Who will benefit most in this situation?
a. A Chilean company that imports oil from Venezuela
b. A Chilean family visiting relatives in the United States
c. A Chilean exporter who sells fruits and vegetables to the U.S.
d. A Chilean importer who brings American cars to Chile
i think it's d, but i'm not too sure
To determine who will benefit most in the scenario where the Chilean peso is decreasing in exchange value compared to the U.S. dollar, let's evaluate the options:
a. A Chilean company that imports oil from Venezuela:
When the Chilean peso is decreasing in value, it means that the company will have to spend more Chilean pesos to purchase the same amount of U.S. dollars needed to import oil from Venezuela. So, this option is less likely to benefit from the situation.
b. A Chilean family visiting relatives in the United States:
If the Chilean peso is decreasing in value, it means that the family will have to exchange more Chilean pesos to get the same amount of U.S. dollars for their trip. This option is also less likely to benefit from the situation.
c. A Chilean exporter who sells fruits and vegetables to the U.S.:
In this scenario, when the Chilean peso is decreasing in value, the exporter will receive more Chilean pesos when they exchange their U.S. dollar earnings. This effectively increases their profits, making it more likely that they will benefit from the situation.
d. A Chilean importer who brings American cars to Chile:
If the Chilean peso is decreasing in value, it means that the importer will have to pay more Chilean pesos to purchase the same amount of U.S. dollars needed to import American cars. As a result, this option is unlikely to benefit from the situation.
Based on the analysis, the answer is most likely option c. A Chilean exporter who sells fruits and vegetables to the U.S.