Trade Dollar

What effect will the appreciation of the dollar have on international trade and invesment?

Well I was looking for a slightly more educated response than “the countries who buy stuffs from USA will find it expensive”… and It depends on significantly more than benchmark interest rates.

Appreciation of dollar will make the Imports cheap for usa.But The countries who Buy stuffs from USA will find it expensive….If that continues,.At one point, USA govt will intervene and try to depreciate the USD inorder to boost it’s exports and employment which failed during slumping export.

or,

By recent actions taken bu central govt’s all over the world, if the economy improves, appreciation of dollar will play different role.It’s all depend on the each country’s Benchmark Interest RATES.

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