When the U.S. exports something, does it earn U.S. dollars or foreign currency?

Question

My book says to be saying both things: that when the U.S. exports something (this is net), it earns dollars. But elsewhere it says it is earning foreign currency by this activity.

Answer 1

Whatever currency the actual transaction is carried out in does not matter.

An export, in the end, means that the US earns foreign currency, and here's why:

Situation #1: A US Company sells something to the UK, but accepts GBP for the good. The US has earned foreign currency.

Situation #2: A US Company requires dollars for the good. This means that the purchaser in the UK has to sell GBP to the United States to obtain dollars, and then use those dollars to purchase the good.

In either scenario, the US ends up with a gain for the same amount in foreign currency.

Answer 2

The answer is the currencies are intertwined in the currency market. The US expects to be paid and is paid in US dollars. That is certain. However, the foreign countries must first purchase US dollars with their currencies, and the US thus has foreign currency in exchange. That causes the value of the US dollar to go up as demand for it goes up. It can work against US exports, as it becomes expensive to buy US products.

Answer 3

when the US exports something, it means that the foreigners are buying US' domestic goods. so it should be earning foreign currency.