(Answered) Monotonous profits on a strong dollar

Management Studies

Problem: In January 2015, several large multinational corporations announced lower than expected earnings for the fourth quarter of 2014. Many blamed the monotonous profits on a strong dollar. How does this work? When the dollar gains value against foreign currencies, why does it hurt U.S. exports? How could this affect the demand for dollars and ultimately affect the exchange rate? Explain your answer and provide examples.

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Business Management, Management Studies

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