Final answer:
The value of 1 U.S. dollar in euros varies with the fluctuating exchange rate, which impacts international trade and company profitability. Historical data show that, for example in 1999, 1 U.S. dollar was roughly equal to 0.94 euros, but by 2013, it was closer to 0.73 euros due to the strengthening of the euro against the dollar.
Step-by-step explanation:
The value of 1 U.S. dollar in euros varies depending on the exchange rate. Exchange rates fluctuate due to market conditions and can change from day to day.
For instance, if we look at historical values, in 1999, the euro's value was $1.06/euro, meaning that 1 U.S. dollar was equal to about 0.94 euros. By the end of 2013, the euro had strengthened against the dollar, making it $1.37/euro, where now 1 U.S. dollar was worth approximately 0.73 euros. By the end of February 2017, the exchange rate returned to $1.06/euro.
The exchange rates impact international business, indicating, for example, a stronger euro can dissuade exports by European firms due to higher production costs in the domestic currency relative to sales revenues earned in the U.S. Conversely, a weaker U.S. dollar tends to encourage American exports. The exchange rate directly influences the profitability of companies engaging in international trade.