When the U.S. dollar appreciates relative to the Brazilian currency, the real, products that are produced by U.S. companies and exported to Brazil:
A) become less expensive in Brazil.
B) become more expensive in Brazil.
C) are not impacted by price changes.
D) do not affect purchasing power in Brazil.

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates relative to the Brazilian real, it means that more reals are needed to buy the same amount of dollars. Therefore, products priced in dollars become more expensive for Brazilian consumers when converted back to their local currency, the real.