When the U.S.dollar appreciates against other currencies,U.S.goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.
A) less expensive, positive
B) more expensive, negative
C) less expensive, negative
D) more expensive, positive

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates against other currencies, U.S. goods can be more expensive to consumers in foreign countries. At the same time, however, appreciation of the U.S. dollar can have negative implications for American companies that have branch operations overseas. The reason for this is that profits from abroad must be exchanged for dollars at a more expensive rate of exchange, reducing the amount of profit when measured in dollars.