Answer to Question #295314 in Finance for ayzaa

Question

When the dollar is worth more in relation to currencies of other countries, are you more likely to buy American-made or foreign-made jeans? Are U.S. companies that manufacture jeans happier when the dollar is strong or when it is weak? What about an American company that is in the business of importing jeans into the United States?

Answer 1

When the dollar is stronger than the currencies of other countries, I am likely to buy the foreign jeans since they will be cheaper compared to the one made in America. No the American manufacturers will not be happy because the demand for their jeans will reduce since the demand for foreign jeans would have increase due to their cheaper price. Yes the importers of the foreign jeans will be happy since the demand for their good will be high due to their cheaper price.