Springfield Co., based in the United States, has costs from orders of foreign material that exceed its foreign revenue. All foreign transactions are denominated in the foreign currency of concern. This firm would ____ a stronger dollar and would ____ a weaker dollar.

Question

​Springfield Co., based in the United States, has costs from orders of foreign material that exceed its foreign revenue. All foreign transactions are denominated in the foreign currency of concern. This firm would ____ a stronger dollar and would ____ a weaker dollar.

Quizplus · Accepted Answer

A stronger dollar would make foreign materials cheaper for Springfield Co. to purchase, which would lower their costs and benefit the company. On the other hand, a weaker dollar would make foreign materials more expensive for Springfield Co. to purchase, which would raise their costs and adversely affect the company.

​Springfield Co

Springfield Co