QUESTION 3: HOW DOES A DEPRECIATING DOLLAR IMPACT TRADE?
DIRECTIONS: ANALYZE THE FOLLOWING RESOURCES AND COMPLETE THE TASKS THAT FOLLOW.
TASK 1: EXCHANGE RATES PRACTICE
Read and complete the following handout on exchange rates found in your packet.
Exchange Rates Practice
Download File
Source 1: Introducing the $7.76 Big Mac
Source 2: The Big Mac Index
Source 3: How Much Goods Cost Around the World
Source 4: Is a Strong Dollar a Good Thing or a Bad Thing?
Source 5: Why Does a Trade Deficit Weaken the Currency?
Source 6: Exchange Rates
Source 7: Let Economics Plan Your Summer Vacation
Source 8: US Trade Gap Narrows
TASK 2:
TRADE WINNERS AND LOSERS
Answer the question "How does a depreciating dollar impact trade?" Write 2-3 paragraphs in your packet. Make sure you address the following:
DIRECTIONS: ANALYZE THE FOLLOWING RESOURCES AND COMPLETE THE TASKS THAT FOLLOW.
TASK 1: EXCHANGE RATES PRACTICE
Read and complete the following handout on exchange rates found in your packet.
Exchange Rates Practice
Download File
Source 1: Introducing the $7.76 Big Mac
Source 2: The Big Mac Index
Source 3: How Much Goods Cost Around the World
Source 4: Is a Strong Dollar a Good Thing or a Bad Thing?
Source 5: Why Does a Trade Deficit Weaken the Currency?
Source 6: Exchange Rates
Source 7: Let Economics Plan Your Summer Vacation
Source 8: US Trade Gap Narrows
TASK 2:
TRADE WINNERS AND LOSERS
Answer the question "How does a depreciating dollar impact trade?" Write 2-3 paragraphs in your packet. Make sure you address the following:
- Who is helped/hurt by a strong currency
- Who is helped/hurt by a weak currency
- Example of the effects of a depreciating dollar on trade
- Example of the effects of an appreciating dollar on trade
- Balance of Trade and Exchange Rates relationship.