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Determine whether each entity would be helped or hurt by a depreciation of the Brazilian Real. (3 points)
Helped Hurt
A Brazilian tourist who wants to visit Italy.
A South African consumer who buys Brazilian coffee.
A Brazilian investor who has already invested in US Stocks.
A Canadian investor who wants to invest in a Brazilian warehouse.
A Brazilian farm that exports soybeans to China.
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A Brazilian tourist who wants to visit Italy. — Hurt
Reason: foreign travel becomes more expensive in BRL when the real weakens.
A South African consumer who buys Brazilian coffee. — Helped
Reason: Brazilian exports become cheaper in foreign currency, so imported coffee costs less.
A Brazilian investor who has already invested in US stocks. — Helped
Reason: US‑dollar assets are worth more in BRL after depreciation.
A Canadian investor who wants to invest in a Brazilian warehouse. — Helped
Reason: Canadian dollars buy more BRL, making Brazilian assets cheaper to acquire.
A Brazilian farm that exports soybeans to China. — Helped
Reason: Export revenues received in foreign currency convert into more BRL.
Reason: foreign travel becomes more expensive in BRL when the real weakens.
A South African consumer who buys Brazilian coffee. — Helped
Reason: Brazilian exports become cheaper in foreign currency, so imported coffee costs less.
A Brazilian investor who has already invested in US stocks. — Helped
Reason: US‑dollar assets are worth more in BRL after depreciation.
A Canadian investor who wants to invest in a Brazilian warehouse. — Helped
Reason: Canadian dollars buy more BRL, making Brazilian assets cheaper to acquire.
A Brazilian farm that exports soybeans to China. — Helped
Reason: Export revenues received in foreign currency convert into more BRL.
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