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Jose Hostia
Brad Eldredge
Business and Marketing concepts
27 October 2011
Case 1
1. What are the effects of a strong dollar for the United States?
With some of the research I have made Ican say that when the dollar is strong its benefits a lot the companies that import raw materials or manufactured goods from a foreign country, for example Wal-Mart, they import their cloth and rawmaterial from China, they can buy their material at a less expensive price, and sell it in the United States cheaper, or the oil example, is the same if the dollar is strong they can buy the oilcheaper, and the price here will be less expensive, but it has their negative parts too, because if we look at the fact that the foreign products get cheaper with the strong dollar, the people won’t buy theUS products, for example the cars, if the dollar get stronger than the yen, the cars will be less expensive than a US car. This is only an example of a product, but it goes with every product from aforeign country, it some way it’s good for the people who live in the United States, but not that good for the US company that are competing with the foreign companies in the United States, so it mightnot help that much with the economy of the country
2. What are the effects of a relatively weak dollar for the United States?
When the dollar is relatively weak it’s the opposite well for thecompanies in the US that exports, because their materials are cheaper now and the foreign consumers demand this products because of its price, another effect is the tourism, because the flights arecheaper for people who wants to come and visit United States, and if the dollar is weak the products for them are cheaper too, so the tourism in that time increase a lot, but by the other hand theproducts for the US citizens increase. One big example of this is the Hotels that get advantage of this, because the tourism increase so, they have more consumers at that time, and the companies that has...
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