Economics: Principles, Problems, and Policies, 19th Edition

by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.

Published by McGraw-Hill Education

ISBN 10: 0073511447

ISBN 13: 978-0-07351-144-3

Chapter 38 - The Balance of Payments, Exchange Rates, and Trade Deficits - Questions - Page 798: 2d

Answer

No effect on euros

Work Step by Step

This is a domestic Italian transaction with a third-party carrier; no U.S. involvement. Therefore there will be no effect on euros in FX market (trade is domestic to Italy, no cross-border transaction).

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