Final answer:
U.S. currency impacts other nations through exchange rate fluctuations and trade balances.
Step-by-step explanation:
Two ways U.S. currency impacts other nations are through exchange rate fluctuations and trade balances.
Firstly, exchange rate movements can affect exporters, tourists, and international investors. For example, a stronger U.S. dollar reduces a country's exports as it makes foreign currencies weaker, resulting in lower profits for exporting firms.
Secondly, exchange rates can affect trade balances. If the value of the U.S. dollar increases, U.S. importers can benefit because consumers in the U.S. will purchase more imported goods. Conversely, if the value of the U.S. dollar decreases, U.S. products become cheaper to other nations, which can increase exports.