What does this fluctuation in the exchange rate mean

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Reference no: EM134040319

Question

In March, the exchange rate between the Euro and the U.S. dollar was €1 Euro = U.S.D. $1.1. Three months later, the exchange rate was €1 Euro = U.S.D. $1.15. What does this fluctuation in the exchange rate mean?

U.S. companies that sell their products in Europe will find their revenue has increased. European companies selling their products in the United States will find their revenue has decreased. It will cost companies from Europe more to purchase raw materials from the United States. It will cost U.S. companies more to purchase raw materials from Europe.

Reference no: EM134040319

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