Is it better if the U.S. dollar rises in value or if the U.S. dollar falls in value against other countries' currencies? The question is important because a government can intervene to raise or lower value of currency relative to other currencies. However, such interventions are controversial because it can create "consequences".

Living in Springfield area or even in US, one may not think much of potential impacts from foreign exchange rate changes, but I assure you that it will, either directly or indirectly. For example, it can affect consumer product prices (directly) and it can impact local economies by having more or less foreign tourists or students studying in local colleges (indirectly).

The answer to the question above question is "It depends. To understand this concept, please answer the following questions.

Who would potentially gain and who would potentially lose if USD gets *stronger (appreciates) against mentioned countries currencies or Euro? (You need to explain your answers to get the full credit).

* When I said the USD gets stronger against other currencies, I didn't mean the face value changed.

For example, let's say I am in Germany and decide to buy a BMW there and the foreign exchange rate is 1 USD = 0.86 Euro and the BMW cost 30,000 Euro. That means I need to have $1/0.86 Euro =$X/30000 Euro.

Solve for X = $34,883.72

Now, the USD gets strong so the foreign exchange rate is 1 USD = 0.95 Euro

Now $1/0.95 Euro = $X/30,000 euro, so I only need $31,578,85.

The 30,000 euro price for BMW didn't change. But because the USD got stronger against the Euro, the purchasing power of USD got stronger which means it takes less USD to convert to 30,000 euro.

In general, when a country's currency value increases against another country's currency, it helps the countrys importers but exporters will not like it because their products become less competitive (Got more expensive for other countries to buy). This works in reverse when a country's currency value decrease against foreign countries.

Questions:

1) An Italian textile firm is about to build a factory in South Carolina. With the increases in USD against Euro (Ceteris paribus), will this increase or decrease the Italian textile firms original budget (The amount of euro they need to convert to USD?)

2) Mr. Choe is vacationing in Europe where euro is mainly used. With the increases in USD against Euro (Ceteris paribus), what happened to my purchasing power (increased or decreased) if I set my budget to $2,000 spending while I am there?

3) Yesterday, 1 Euro was worth $1.22. What is the euro price of a dollar? (In other words, $1 USD is worth how much Euro?)

4) iPhone XS Max costs $1,449 USD. How much the phone will cost in following countries currencies based on the conversion rates given below?

Country	Currency	Conversion Rate
CANADA (?)	DOLLAR (CAD)	1 CAD = 0.787464 USD
CHINA (?)	YUAN (CNY)	1 CNY = 0.1593245 USD
GREAT BRITAIN (?)	POUND (GBP)	1 GBP = 1.3631 USD
JAPAN (?)	YEN (JPY)	1 JPY = 0.0094313 USD
MEXICO (?)	PESO (MXN)	1 MXN = 0.056506 USD