Different opinions about the value of the dollar

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Reference no: EM139117

Q. The news reports which the exchange rate for the dollar just hit its lowest value in a decade; it also reports which Caterpillar, a heavy equipment manufacturer, has just reported which sales of their earthmoving equipment have hit an all-time high and so has the value of stock. As on another side your parents just cancelled their plans for the family European vacation over the summer.

a. Why do Caterpillar and your parents have different opinions about the value of the dollar?

b. Caterpillar imports many parts and raw materials for their manufacturing processes and they sell many finished products abroad. Since they are happy about a low dollar, illustrate what must be true about the proportions of Caterpillar's imports and exports?

c. Is it true which a strong dollar is good for America? After all which means Americans are able to exchange some of their GDP or a greater amount of foreign GDP! But if it is good for America is it good for all Americans? Explain

Reference no: EM139117

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