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What is the impact on importers to the U.S. from the EU?

If the exchange rate of the dollar and the Euro goes from one Euro equals $1.42 cents in 2011 to one Euro equals $1.30 in 2012, has the dollar strengthened or weakened and why? If this happens, what is the impact on importers to the U.S. from the EU and on exporters from the U.S. to the EU?

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The essay that you write for your question should focus on this:

1 euro = 1.42 in 2011
1 euro = 1.30 in 2012

1.30 is less than 1.42, therefore the value of the dollar has declined or depreciated. Exchange rates continually change due to a number of factors. Here is an excellent reference for why foreign exchange rates fluctuate that you could use for ...

Solution Summary

This solution discusses the following international business scenario:

If the exchange rate of the dollar and the Euro goes from one Euro equals $1.42 cents in 2011 to one Euro equals $1.30 in 2012, has the dollar strengthened or weakened and why? If this happens, what is the impact on importers to the U.S. from the EU and on exporters from the U.S. to the EU?

$2.19