As a result of a decrease in the demand for U. S. dollars, there has been depreciation in the value of the U. S. dollar relative to Jamaican dollars. The depreciation in the U. S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U. S. dollar. A. Todd, an American, going to visit Jamaica for spring break.
B. An investment bank in Jamaica that is interested in purchasing U. S. government bonds.
C. Goodyear, a U. S. based firm, selling car tires in Jamaica.
D. A family from Jamaica visiting relatives in the U. S. E. A firm from Jamaica selling handbags in the U. S.
F. U. S. based Hewlett-Packard, which is purchasing a high tech company in Jamaica.

Answer;

A. Todd, an American, going to visit Jamaica for spring break. - Loser

The US dollar depreciating means that it now takes more US dollars to buy Jamaican dollars. Todd will afford less Jamaican dollars when he goes to Jamaica.

B. An investment bank in Jamaica that is interested in purchasing U.S. government bonds. - Winner

The Investment bank will see that their domestic currency is stronger than it was therefore they can buy more US dollars. As a result it will be cheaper for the Investment bank to buy U.S. Government bonds.

C. Goodyear, a U.S. based firm, selling car tires in Jamaica. - Winners.

Goodyear will be winners because when they sell their tires in Jamaican dollars and then convert it to USD, they will.get more dollars from the transaction than before.

D. A family from Jamaica visiting relatives in the U.S. - Winners

As the Jamaican family will be able to buy more US dollars than before, they are winners.

E. A firm from Jamaica selling handbags in the U.S. - Losers.

As the firm sells in the US, they sell in US dollars. When they try to convert their sales to Jamaican dollars, they will get less than before.

F. U.S. based Hewlett-Packard, which is purchasing a high tech company in Jamaica. - Losers.

The depreciation of the US dollar means than HP will have to spend more dollars purchasing the company than before because the purchase price of the company will be stated in Jamaican dollars.

a

explanation: