Your lovely mother-in-law, who loves waxing lyrically about your spouse's last paramour before meeting you, owns a successful business.  She produces a product that when applied to the skin makes you a better person.  She claims to use it frequently.

 

She produces her product employing only inputs from the United States. Global sales, however, make up 60 percent of her total sales. 

 

She knows that you are currently taking a class in global finance and tells you such stuff is a waste of time for her since she sells all her products in dollars and so foreign exchange rates do not matter.  Explain to her with, a smile why they do matter.

 

Arguing that that the U.S. dollar was about to appreciate materially. 

Explain how that will impact your mother-in-laws business. It may be better, though, not to share your answer with her.

Answer rating: 100% (QA)

Foreign exchange rates do matter for your motherinlaws business even though she sells her products i... View the full answer