Airbus is a passenger aircraft manufacturer based in Europe,but like the rest of the global aerospace industry,conducts is business in U.S.dollars.Suppose Airbus sells an aircraft to Air France,and Air France pays Airbus in U.S.dollars. If the value of the U.S.dollar falls relative to the euro,Airbus's profits in Europe will ________ because it will receive ________ when it converts the dollars it earns from the sale into euros.

Question

Quizplus · Accepted Answer

If the value of the U.S. dollar falls relative to the euro, Airbus's profits in Europe will fall because it will receive fewer euros when it converts the dollars it earns from the sale into euros. Therefore, option D is the correct choice.

Airbus Is a Passenger Aircraft Manufacturer Based in Europe,but Like