Question
How can international trade be affected by currency conversion?
Responses
A It costs a significant amount of money to exchange one currency for another.It costs a significant amount of money to exchange one currency for another.
B A country with a strong currency value can take advantage of a countries resources if it has a much weaker value.A country with a strong currency value can take advantage of a countries resources if it has a much weaker value.
C All countries trade using the US dollar so it does not impact international trade.All countries trade using the US dollar so it does not impact international trade.
D Currency conversion is not a factor for counties that have free trade agreements.
Responses
A It costs a significant amount of money to exchange one currency for another.It costs a significant amount of money to exchange one currency for another.
B A country with a strong currency value can take advantage of a countries resources if it has a much weaker value.A country with a strong currency value can take advantage of a countries resources if it has a much weaker value.
C All countries trade using the US dollar so it does not impact international trade.All countries trade using the US dollar so it does not impact international trade.
D Currency conversion is not a factor for counties that have free trade agreements.
Answers
GPT-4o mini
The most accurate response regarding how international trade can be affected by currency conversion is:
**B** A country with a strong currency value can take advantage of a country's resources if it has a much weaker value.
This is because a strong currency can make imports cheaper and allow countries to purchase resources or goods from other countries at a lower relative cost. Conversely, countries with weaker currencies may find it more expensive to import goods, affecting their trade balance. Currency conversion rates can significantly impact trade dynamics and pricing in international markets.
**B** A country with a strong currency value can take advantage of a country's resources if it has a much weaker value.
This is because a strong currency can make imports cheaper and allow countries to purchase resources or goods from other countries at a lower relative cost. Conversely, countries with weaker currencies may find it more expensive to import goods, affecting their trade balance. Currency conversion rates can significantly impact trade dynamics and pricing in international markets.