If the exchange rate falls from 10 francs per dollar to 6 french francs per dollar then from the perspective of an American consumer, what happens to the attractiveness of french goods?
2007-02-14 18:22:01 · 3 answers · asked by H B 1 in Social Science ➔ Economics
The dollar has weakened; which in the US hurts the demand for french products.
Using your example, here's why.
Assume a bottle of French wine is 100 francs.
This used to cost an American $10.
At the new exchange rate; it now costs $16.67.
2007-02-15 01:37:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
French goods now appear more expensive to Americans. They are likely to buy less.
Say if a bottle of wine costs 60 franks. Americans use to pay $6 for it at 10 franks/$. Now they pay $10 for it at 6 francs/$.
2007-02-14 20:18:10 · answer #2 · answered by JuanB 7 · 1⤊ 0⤋
The foreign places money of Puerto Rico is the US greenback. The substitute value is greenback for greenback face value. the human beings of Puerto Rico are US voters. sunlight hours value reductions time isn't reported in Puerto Rico Spanish ans english are the 1st rate languages spoken, and you do no longer choose a passport to holiday there, Gracia's senor!
2016-12-17 16:40:20 · answer #3 · answered by bumbray 4 · 0⤊ 0⤋