Final answer:
A Eurobond issued in U.S. dollars can be sold to investors globally without restriction to any particular country. However, shifts in currency exchange rates, such as an appreciation of the euro against the dollar, can affect the cost and attractiveness of these bonds to investors using different currencies.
Step-by-step explanation:
A Eurobond issued in U.S. dollars can be sold in the primary market to investors in any country, including the U.S., Canada, Russia, and EEC (European Economic Community) Countries. Therefore, there is no correct answer to which country it cannot be sold in, as per the general principle of Eurobond markets.
However, to understand the concept better, let's consider foreign exchange and its impact on such investments:
When the euro strengthens against the dollar, as a hypothetical example suggests, this means that each euro can buy more dollars. For an investor using euros, such as a Greek bank, this increase in the value of the euro could make investing in U.S. dollar-denominated bonds, like Canadian government bonds, less costly. Conversely, if the euro weakens, the cost for euro-based investors to purchase U.S. dollar-denominated assets increases.