When the U.S. dollar appreciates, foreign goods are cheaper in the U.S. and U.S. goods are more expensive abroad.

Question

Quizplus · Accepted Answer

This is because a stronger or appreciating U.S. dollar means that it can purchase more foreign currency or goods, effectively lowering the relative cost of foreign goods in the U.S. Conversely, U.S. goods become more expensive for foreign buyers as the higher value of the dollar requires more of their currency to purchase the same amount of U.S. goods.