Trenton McCarthy, question 6, chapter 11

The weakening of the dollar and the strengthening of a dollar both have the possibility of drastics changes in a countries economy and the business of importers and exporters. Wheelen gave two examples, one for each side. When the dollar weakens a New Nork Times began stating that as the dollar declined so did the worlds wealthiest economy. On the other side, when the dollar strengthens people claim that it may be too strong. When the dollar was equivalent to 90 yen in 2001, Toyota earnings dropped by 450 million dollars just like that. The best place for the value of a dollar is right in the middle but that may never happen therefore stability is the goal. Now government officials might purposefully manipulate the currency to aid the economy or the opposite effect could happen to complicate things even more. Consumers would be taxed on every import they buy... Essentially having detrimental effects on the importer as well as the exporter.