Final answer:
The exchange rate of 103 Kenyan shillings to 1 U.S. dollar indicates that the Kenyan currency is weaker relative to the U.S. dollar, which could make travel cheaper for U.S. tourists in Kenya and more expensive for Kenyan tourists in the U.S.
Step-by-step explanation:
If the exchange rate is 103 Kenyan shillings to 1 U.S. dollar, this does not definitively tell us about the overall strength of Kenya's economy as compared to the U.S. What it does indicate is that, at least in terms of the exchange rate, the Kenyan currency is weaker relative to the U.S. dollar. This means that for a U.S. tourist in Kenya, their dollars would exchange for more Kenyan shillings, making their travel potentially less expensive in terms of U.S. dollars. Conversely, for a Kenyan tourist in the U.S., a stronger U.S. dollar relative to their currency means they would receive fewer dollars when they exchange their shillings, making travel more costly.
It's essential to understand that an exchange rate reflects the relative value of currencies but is not a direct measure of economic health or strength. Factors such as inflation, interest rates, trade balances, and economic policies can all impact the exchange rate. So, while it might suggest something about the relative purchasing power of the two currencies, it does not alone provide enough information to assess the overall economic strength or weakness of a country.