Using evidence from at least two (2) of the statistical resources you research o

Question

Using evidence from at least two (2) of the statistical resources you research on the web, such as the US Census trade statistics or the White House Economic Statistics Briefing Room, explain the following in a 1-2 paragraph response: Give an example from your region specifically where a sector of the economy is a) helped by a falling dollar and b) hurt by a falling dollar. Support your answer with evidence, be sure to provide your sources at the end of your posting (e.g. weblinks to articles or similar that address this issue).

Explanation / Answer

Fluctuations in the movement of currency have major impact on export and import of a nation. Exports of a nation increases in case of falling dollar because depreciation of dollar makes exports of a nation cheaper as it reduces the foreign currency price of dollar. One of the sector that benefits the most with falling dollar is capital good sector. Thus, exports of commercial aircrafts, industrial machines, semi conductors, telecommunications increases.

The sectors which are hurt by a falling dollar are the sectors dependent on import of goods. This is because depreciation of dollar makes the good expensive in terms of foreign currency. One major sector which hurts the most in case of falling dollar is oil and petroleum sector. Depreciation of currency makes oil expensive and thus reduces imports of oil.

Source - US Census trade statistics

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