What will happen if the value of the U.S.dollar increases in a foring country that has a weaker economy.?
Answer:
That would mean that the value of the monetary unit in the foreign country would decrease. For example, if 100 francs or pounds or rubles equaled one dollar, then the value of the dollar increased, then it might take 105 or 110 francs to equal the dollar
I was in Mexico in 1989, the value of the peso was about 300 to one dollar..can you imagine needing 300 of anything to equal one dollar?
You would have to go to a 3rd world country to find an economy more weak or screwed up than America's. I wouldn't expect to make any money in a foreign economy from currency speculation if that's what you're getting at. You'd have to invest in really crappy currency to do that, and you'd probably lose it all.
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