To answer the question just put an A, B, or C next to 1., 2.,3 ,..listed vertically. g.... A = prefer higher relative domestic currency to foreign currency (appreciating/stronger currency) B = prefer lower relative domestic currency to foreign currency (depreciating/weaker currency) C = would not care either way/indifferent to domestic currencies relative value Portugal company that makes flavored wine that they export to the U.S. only and do not sell domestically in their home market or anywhere else 1. 2. U.K. clothing retailer that gets all of its products for its stores out of China and Turkey. 3. Consumers who buy imported wines and cheese.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 23CTQ: Why would a nation dollarize—that is, adopt another countrys currency instead of having its own?
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To answer the question just put an A, B, or C next to 1., 2.,3 ,..listed vertically.
Body
A = prefer higher relative domestic currency to foreign currency (appreciating/stronger currency)
B = prefer lower relative domestic currency to foreign currency (depreciating/weaker currency)
C = would not care either way/indifferent to domestic currencies relative value
Style
Layout
More
Portugal company that makes flavored wine that they export to the U.S. only and do not sell domestically in
their home market or anywhere else
1.
Font
Arial
Regular
10 pt
2.
U.K. clothing retailer that gets all of its products for its stores out of China and Turkey.
B
3.
Consumers who buy imported wines and cheese.
Character Styles
None
Workers in furniture manufacture companies that have yet to enter the international market either importing
parts or exporting product. Their product does share the furniture market with imports.
4.
Text Color
5.
Traders speculating in foreign exchange trading in all currencies that are based in Malta.
I.
6.
Dockworkers at ports along the Italian coast that handle cargo coming into Italy
Stockholders of a U.S. company that produces and sells its product only in the U.S. but compete with
imports into the U.S. market.
Spacing
1.0 - Single
7.
> Bullets & Lists
None
8.
Mexican buyer machine parts from a German company for sale in Mexico.
Drop Cap
German Cookie Company who sells their cookies only in the German market. Germany is in the European
Union so its products must compete with other companies that import into the Germany market.
9.
Politician in a town with one main factory whose product competes in the U.S. market with products from
overseas and the company does not import any inputs.
10.
Transcribed Image Text:Text To answer the question just put an A, B, or C next to 1., 2.,3 ,..listed vertically. Body A = prefer higher relative domestic currency to foreign currency (appreciating/stronger currency) B = prefer lower relative domestic currency to foreign currency (depreciating/weaker currency) C = would not care either way/indifferent to domestic currencies relative value Style Layout More Portugal company that makes flavored wine that they export to the U.S. only and do not sell domestically in their home market or anywhere else 1. Font Arial Regular 10 pt 2. U.K. clothing retailer that gets all of its products for its stores out of China and Turkey. B 3. Consumers who buy imported wines and cheese. Character Styles None Workers in furniture manufacture companies that have yet to enter the international market either importing parts or exporting product. Their product does share the furniture market with imports. 4. Text Color 5. Traders speculating in foreign exchange trading in all currencies that are based in Malta. I. 6. Dockworkers at ports along the Italian coast that handle cargo coming into Italy Stockholders of a U.S. company that produces and sells its product only in the U.S. but compete with imports into the U.S. market. Spacing 1.0 - Single 7. > Bullets & Lists None 8. Mexican buyer machine parts from a German company for sale in Mexico. Drop Cap German Cookie Company who sells their cookies only in the German market. Germany is in the European Union so its products must compete with other companies that import into the Germany market. 9. Politician in a town with one main factory whose product competes in the U.S. market with products from overseas and the company does not import any inputs. 10.
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