Southwest Airlines is a major carrier based in Texas, and has made a strategy of cutting fares drastically on certain routes with large effects on air traffic in those markets…..
Explain how this change in exchange rates could impact U.S.consumers and firms?
Australia is the major trading partner for the United States. In 2010, U.S. exports toAustralia were more than $171 billion and imports from Australia totaled more than $224 billion.On January 1, 2009, the exchange rate between the Australian dollar and the U.S. dollar was1.224 Australian dollars = 1U.S. dollar. On January 1, 2011, the exchange rate was 1.05Australian dollars = 1 U.S. dollar. Explain how this change in exchange rates could impact U.S.consumers and firms?