Describe what occurs to American imports and exports when the U.S. dollar is strong. Describe what...

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Describe what occurs to American imports and exports when the U.S. dollar is strong. Describe what occurs to American imports and exports when the U.S. dollar isweak.

David · Accepted Answer

Describe what occurs to American imports and exports when the U.S. dollar is strong. 
Describe what occurs to American imports and exports when the U.S. dollar is weak.  
The degree of export and import for the United States varies in terms of the strength of 
the U.S. dollar. In this respect it must be noted that, when the U.S. dollar is strong, the exports 
from the United States become expensive for the foreign purchasers and this may hurt the 
American exporters dearly (Thoma, 2014). But when the U.S. dollar is strong, the imported 
items become cheaper the Americans, and hence, “import prices ought to rise as the dollar 
becomes stronger against other currencies” (Thoma, 2014). Quite an inverse occurs when the 
U.S. dollar is weak. When the U.S. dollar is weak the export becomes more profitable than the 
imports as financial barriers to the exporters become slack. But due to the weakening of the U.S. 
dollar the price of the imported items becomes greater and this costs the importers dearly.  And 
hence, it can be said that the situations caused by a strengthening U.S. dollar and the situations 
caused by a weakening U.S. dollar are inversely proportionate to a large extent.

Describe what occurs to American imports and exports when the U.S. dollar is strong. Describe what occurs to American imports and exports when the U.S. dollar isweak.

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