When the value of the dollar is low compared with the value of other currencies,products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

Question

Quizplus · Accepted Answer

When the value of the dollar is low, it takes less foreign currency units to purchase a dollar, making products made in the United States relatively less expensive for foreign buyers. At the same time, products made overseas become relatively more expensive for American buyers, as they have to exchange more dollars to purchase the same amount of foreign currency needed to make the purchase.

When the Value of the Dollar Is Low Compared with the Value