Effects of Weakening Dollar on U.S. & Foreign Companies

a. The falling value of the dollar in relation to the euro and the yen can have positive earnings effects for United States multinationals because the relative cost of goods produced in the United States to foreign buyers will become lower. People in euro countries, for example, will be able to buy an American product for fewer euros than was the case before the dollar started to fall in value. Large American export companies stand to benefit because the lower relative cost of American goods will lead to an increased demand for American goods in Europe and Japan (Postelnicu, 2003).

b. Postelnicu (2003) reports the ass

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Approximate Word count = 457
Approximate Pages = 2 (250 words per page)

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