ANSWERS: 2
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Yes. A fall in the value of the dollar will mean it takes more dollars to buy the imported products. Therefore the price in dollars rises. If the price goes up, the public is less likely to buy an import than a local alternative. So a weak dollar really hurts foreign imports.
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Think about this we export about 3-4 million of raw materials out. We import about 30-40 million dollars of products in. At any given point. Until it evens out the dollar will not be worth much.
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