Stock prices of U.S. firms primarily involved in exporting are likely to be ____ affected by a weak dollar and ____ affected by a strong dollar.
A)favorably; adversely
B)adversely; adversely
C)favorably; favorably
D)adversely; favorably

Question

Quizplus · Accepted Answer

A weak dollar makes U.S. exports cheaper for foreign buyers, potentially increasing sales and profits for U.S. firms involved in exporting, which is favorable. Conversely, a strong dollar makes U.S. exports more expensive for foreign buyers, potentially decreasing sales and profits, which is adverse.

Stock Prices of U