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Changes in Currency Value and Its Effect on Trade

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Explain how a rise in the euro might affect a French company exporting wine to the U.S., and compare that to the impact on a German firm importing semiconductors from the U.S.

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The expert explains how a rise in the euro might affect a French company exporting wine to the U.S.

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Hi there,

The simple answer is that an increased Euro would make it more expensive for Americans to purchase the same bottle of wine. Note, this is based on the assumption that the American dollar is dropping at the same rate as the Euro is increasing. This ...

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