A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing plants based in the United States.
A)This is a true statement.
B)No, the U.S. dollar must be stronger.
C)Yes, because it provides for a weakened foreign demand for U.S.-made goods.
D)Yes, because it makes such plants less cost competitive with foreign plants.
E)Yes, because it provides incentives of foreign companies to locate manufacturing facilities in the U.S. to make goods for U.S. consumers.

Question

Quizplus · Accepted Answer

A weaker U.S. dollar makes American-manufactured goods relatively cheaper compared to foreign-made goods, which makes them more attractive to foreign buyers. As a result, U.S. manufacturing plants can increase their sales, which is economically favorable. Additionally, a weaker dollar makes imports more expensive, which creates incentives for American consumers to choose American-made goods.

A Weaker U