Question

discuss the advantages and disadvantages of a strong dollar?

who benefits most from a weak dollar?

who benefits most from a strong dollar?

describe under what conditions is a strong US dollar better for the economy than a weak dollar and vice versa?

Answer 1

1.

Advantages of strong dollar:

Traveling Abroad Is Cheaper

Imports are Cheaper

Multinationals That Do Business in U.S. Benefit

Status as World Reserve Currency Is Bolstered

Disadvantage of strong dollar:

Tourism to the U.S. Is More Expensive

Exporters Suffer

U.S. Companies Conducting Business Abroad Are Hurt

Emerging Market Economies Are Negatively Impacted.

2.

Other countries

Employers

Industries

Companies will prefer to pay employees in a weak currency, so the workers who accept a weak currencies get jobs as reducing unemployment, getting people to work producing, raising the economy. Alternatively, an economy able to get cheap goods can grow, in the way an economy with a weak currency is limited.

3. Strong currency can have various advantages. The price of imports falls. Therefore, living standards can increase as consumers and firms can benefit from lower prices of imported goods. Some firms who rely on imported raw materials will see a fall in costs.

4. A strong dollar helps U.S. consumers because it makes foreign goods, which American consumers clearly enjoy buying, cheaper. Yet it hurts U.S. exports and therefore U.S. production and employment.

weak dollar makes U.S. exports and travel in the United States more affordable for foreigners. That helps U.S. production and employment. However, it also raises the price of imports for Americans. This, in a sense, limits U.S. consumers' choices (and can contribute to inflation), but it shifts buying behavior in favor of U.S. products, which also helps U.S. employment.