Question

Please provide an explanation for each!!

1. You are a U.S. importer of oil from Nigeria. Do you prefer a strong or a weak U.S. dollar?
Strong
Weak
 
2. You are a U.S. exporter of airplanes. Your customers are mainly European airlines. Do you prefer a strong or a weak dollar?
Strong
Weak
 
3. You have friends visiting from Brazil. Do they prefer a strong or a weak dollar when traveling?
Strong
Weak
 
4. Your friends in Brazil export Brazil nuts to U.S. importers. Do they prefer a strong or weak U.S. dollar for their business?
Strong
Weak

Answer 1

1.) Strong

2.) Weak

3.) Weak

4.) Strong

Step-by-step explanation:

Answer 2

1. Strong 2. Weak 3. Weak 4. Strong

Step-by-step explanation:

1. A strong dollar means that the US importer of oil from Nigeria will buy more oil. Prices on imported oil will move down because Nigeria's currency will depreciate relative to the dollar.

2. A weak dollar means that the US exporter of airplanes to customers in Europe will export more because it would be more competitive against non-US companies. American-made airplanes will be more affordable to these European airlines.

3. A weak dollar will allow them (friends visiting from Brazil) to buy more dollars, buy more American goods when they travel to US because their Brazilian currency will be strong relative to the dollar.

4. A strong dollar in this case, is preferable, because friends in Brazil will receive more Brazilian local currency when they sell nuts to US importers.