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Financial Management - Chapter 22

Suppose the British increase demand for U.S. products. British importers buy the U.S. products to sell in England. They buy dollars with pounds, so they can pay U.S. firms in dollars. The demand for dollars increases, and forces up the £ / $ exchange rate, which makes U.S. products more expensive in England. | Ch. 22 International Business Finance 2002, Prentice Hall, Inc. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. Exchange Rates Exchange rates affect our economy and each of us because: 1) When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies. Exchange Rates Exchange rates affect our economy and each of us because: 1) When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies. Foreign products become cheaper to us. Exchange Rates Exchange rates affect our economy and each of us because: 1) When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies. Foreign products become cheaper to us. U.S. products become more expensive overseas. Exchange Rates Exchange rates affect our economy and each of us because: Exchange Rates Exchange rates affect our economy and each of us because: 2) When the dollar depreciates (weak dollar), the dollar falls in value relative to other currencies. Exchange Rates Exchange rates affect our economy and each of us because: 2) When the dollar depreciates (weak dollar), the dollar falls in value relative to other currencies. Foreign products become more expensive for us, and Exchange Rates Exchange rates affect our economy and each of us because: 2) When the dollar depreciates (weak dollar), the dollar falls in value relative to other currencies. Foreign products become more expensive for us, . | Ch. 22 International Business Finance 2002, Prentice Hall, Inc. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. International Business Finance Exchange Rate: the price of one currency in terms of another. Exchange Rates Exchange rates affect our economy and each of us because: 1) When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies. Exchange Rates Exchange rates affect our economy and each of us because: 1) When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies. .