What effect do trends in the dollar's value have on companies in different industries and in different locations?
A) significant and equal
B) marginal and equal
C) significant and unequal
D) insignificant and unequal
E) no significant impact

Question

Quizplus · Accepted Answer

Trends in the dollar's value can have significant and unequal effects on companies in different industries and locations. For example, companies that export goods from the United States may face increased competition and lower profits if the value of the dollar rises, as their products become more expensive for foreign customers. On the other hand, companies that import goods into the United States may benefit from a stronger dollar, as they can purchase goods at a lower cost. Similarly, companies in industries that rely heavily on global supply chains or have significant overseas operations may be more affected by changes in currency values than those that operate primarily domestically. Thus, the impact of trends in the dollar's value is significant and varies across different industries and locations.

What Effect Do Trends in the Dollar's Value Have on Companies