The Australian dollar increases from 0.50 to 0.70 USD - HSC - SSCE Business Studies - Question 14 - 2023 - Paper 1
Question 14
The Australian dollar increases from 0.50 to 0.70 USD.
What impact would this have on the goods imported to Australia and the goods exported to the United States?
Worked Solution & Example Answer:The Australian dollar increases from 0.50 to 0.70 USD - HSC - SSCE Business Studies - Question 14 - 2023 - Paper 1
Step 1
Imports
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Answer
With the increase in the Australian dollar's value against the US dollar, goods imported into Australia become less expensive for Australians. This is because Australians can buy more foreign currency for their stronger dollar.
Step 2
Exports
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Answer
Conversely, goods exported to the United States become more expensive for American consumers. This is due to the fact that they now have to spend more US dollars to purchase Australian goods.
