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I need help!!! WILL MARK BRAINLIEST

Terrance exports fine Persian rugs to the United States from Iraq. Iraq's currency, the dinar, has recently lost value relative to the dollar. Which statement best explains how the change in the value of the dinar would affect Terrance's business?

A) The profit on each rug sold would likely decrease because it would cost Terrance more in terms of U.S. dollars to produce each rug.

B) Sales of the rugs would likely increase because U.S. importers would likely buy more of Terrance's rugs due to the dollar's increased purchasing power.

C) The profit on each rug sold would increase because Terrance would be able to spend fewer dinar to produce each rug.

D) Sales of his rugs in the United States would likely decrease. Buyers would be reluctant to buy rugs that were falling in value.

Respuesta :

jcherry99
Short Answer: B
Remark
Not only is Iraq experiencing this phenomenon, almost every country is. It is good for exporters and it is good for importers.

Argument
A is really questionable. It all depends on where Terence gets his raw materials, and how he pays his labor force. It either of these conditions is local (local raw materials or local labor or both), his profits will go up. A therefore will be false.

C is not correct for the same reason A is not correct. You have to assume that the reason he is in Iraq is because either labor or raw materials are constant. Therefore C is false as well.

D assumes we are buying a collector's item. Likely we are not. We are just buying an ordinary good quality rug with a middle east design. D is therefore not true. If we are buying a collector's item, the question should say so.

B is the best answer of these 4. It is true without conditions while the other three have conditions.

Answer:

that guy is right

Step-by-step explanation: