Question

Civics

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

Answer 1

A European company that imports electronic from the U.S.  When the U.S. dollar is weak, demand for exported U.S. goods will increase.

Answer 2

The correct option is: A European company that imports electronics from the U.S.

In this case, we see that it will be very profitable for an importing company to buy US producers, since having a weak dollar, the cost will be very low.