Of the businesses or individuals in the list below, who would benefit most from a weak U.S. dollar? • A family from France planning to vacation in the U.S. • A Japanese company that makes electronics to sell in the U.S. • An American factory that makes microchips and sells them in Asia • A Mexican resort that mostly caters to American guests • A Brazilian company that makes clothing to sell in the U.S.
The Brazilian clothing company and the American student The French family and the American microchip factory The Mexican resort and the Brazilian clothing company The Japanese electronics company and the French family
A country having a weak currency benefits manufacturers in that country, who can sell their goods elsewhere for a lower price than their foreign competition. It also benefits foreign visitors or purchasers, who spend less of their own currency purchasing goods or services produced by the country with the weak currency.
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