4. Explain the relationship between the falling dollar and rising exports. What does this relationship mean for American companies? MO 5.1 So, is the U. S. Dollar, going to fall as predicted or weaken to a danger point? In addition, is the recession really bottoming or are there new economic terrors waiting? On July 19, 2010, Bloomberg wrote that, “The euro rose against the dollar as concern the economic recovery may be faltering in the world’s biggest economy damped demand for the U.S. currency as a refuge” (p. 1). These and many other questions and statements like these are being asked and made in households all over the United States. Business Week (2010) states that, “All year, the dollar has dropped to other major currencies” (p. 1). So, is a fallings dollar good news or bad news? According to Andys2i “Save to Invest” (2010): The fall of the US dollar is actually helping many American business’ as it makes their exports cheaper and boosts locally made product sales as imports become more expensive. In fact, the dollar slide is a major source
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