1:
Assume the Chilean peso is decreasing in exchange value compared to the U.S. dollar. Who will benefit most in this situation?
A Chilean company that imports oil from Venezuela
A Chilean family visiting relatives in the United States
A Chilean exporter who sells fruits and vegetables to the U.S.
A Chilean importer who brings American cars to Chile
I think its C. Is that correct?
2:
Assume the European Euro is increasing in exchange value compared to the U.S. dollar. Who will benefit most in this situation?
A U.S. family traveling throughout Europe
A European company that imports electronics from the U.S.
A European company that imports Asian foods
An international travel agency based in Florida
I think its D. Am I correct?
1. C - yes
2. D - no
Can you help with #2? I'm not comprehending it. Thank you
Re-posting the same question umpteen times will not help you. In addition, if you had put something more appropriate to your question in the Subject line -- such as economics -- a tutor who knows that subject would know to look.
If the value of the Dollar is down, a US company or traveler to Europe will have to buy things with US dollars to get Euros, so they will get fewer Euros, and it wont buy the same products as before. However, an Euro company, or a Euro family, traveling to Disney Land will find their Euro dollars will get more US dollars, and they can go extra shopping.
i need an answer for 2
1:
In this situation, the correct answer is C. A Chilean exporter who sells fruits and vegetables to the U.S. will benefit the most. When the Chilean peso decreases in value compared to the U.S. dollar, it means that it takes fewer Chilean pesos to buy U.S. dollars. As a result, Chilean exporters will receive more pesos when they exchange their U.S. dollar earnings. This will increase their profits and make their products more competitive in the U.S. market.
2:
For the second question, the correct answer is A. A U.S. family traveling throughout Europe will benefit the most when the European Euro increases in value compared to the U.S. dollar. When the Euro strengthens, it means that each dollar will buy more Euros. This makes traveling to Europe more affordable for U.S. tourists as their U.S. dollars will go further, allowing them to purchase more goods and services in Europe at a lower cost.