What problems arise for the irish economy if the euro appreciates against the dollar??
Answer:
If the euro appreciates against the dollar, then Irish goods and European goods will be more expensive relative to American goods. Thus, the average Irishman and the average European will buy more American goods (Irish imports will increase) and Americans will tend to buy less Irish goods (Irish exports will slow).
When the euro becomes stronger, then the Irish have to give up less of their money to buy American goods in dollars. They like that, so they will be more willing to buy American goods. However they will not be as able to sell their stuff to us because when their currency becomes more powerful, their stuff looks more expensive to us. The result is the Irish buy more American goods (imports) and the Irish sell less Irish goods to Americans (exports). It may end up that their imports will exceed their exports and they will run a negative trade balance or in other words a trade deficit.
it makes Guiness and Harp more expensive in US, so americans buy less of it, and that's bad for Irish economy.
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