Question

Which of the following businesses would prefer a weak U.S. dollar to a strong one?

A) A Saudi Arabian company that exports oil to the United States
B) An American company that imports clothing from Italy
C) A Turkish company that imports microchips from the United States
D) A Canadian company that exports lumber to the United States

Answer 1

A Canadian company that exports lumber to the United States. In other words, D.

Answer 2

The correct answer is C. The business that would prefer a weak U.S. Dollar to a strong one would be a Turkish company that imports microchips from the United States.

Step-by-step explanation:

This is so because if the Dollar were cheap compared to the Turkish Lira, this company would have greater purchasing power compared to American companies. That is, the cheaper the dollar is, the more microchips they could buy for the same amount of Liras.

In the remaining cases, a stronger dollar would result in benefits for these businesses.