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.
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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