123k views
0 votes
Which of the following businesses would prefer a strong U.S. dollar to a weak one? (3 points)

Select one:
a. A U.S. company that exports cars to Mexico
b. A French company that imports clothing from the United States
c. A U.S. company that imports bananas from Costa Rica
d. An Indian company that imports computers from the United States

User Rfb
by
7.8k points

2 Answers

4 votes

Hello!

The correct answer is C. A U.S. company that imports bananas from Costa Rica.

This is correct because a "strong U.S. dollar" makes American products appear more expensive to foreign countries. This causes the demand of U.S. goods to decrease. This gives the U.S. dollar more value, so if the U.S. imports goods, the product will cost less. Any other answer would be incorrect, because other foreign countries would not want to import or buy goods/services from the U.S. because of the rising prices.

Hope this helps!

User Ghostman
by
6.7k points
4 votes
the answer is D.

hope this helps !!
User Sahil Thummar
by
6.4k points