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Chapter 11: Globalization: International Winners and Losers
You are a banker watching exchange rates between the US and Norway. In June 2007, one US dollar was equal to 5.86 Norwegian kroner. You look again in July 2008 and see that one US dollar is now equal to 5.64 kroner.
- Has the krone gotten stronger or weaker against the dollar?
- Has the dollar gotten stronger or weaker against the krone?
- Given your answers to parts a and b of this exercise, will this result in Norway's importing more or fewer goods from the US? Why?
- Who in the US benefits from the new exchange rate? Why?
- Who in the US is hurt by the new exchange ...