Finance, Forex and Investments

Exchange Rate?

If the exchange rate falls from 10 francs per dollar to 6 french francs per dollar then from the perspective of an American consumer, what happens to the attractiveness of french goods?

Public Comments

1. French goods now appear more expensive to Americans. They are likely to buy less. Say if a bottle of wine costs 60 franks. Americans use to pay $6 for it at 10 franks/$. Now they pay $10 for it at 6 francs/$.
2. The dollar has weakened; which in the US hurts the demand for french products. Using your example, here's why. Assume a bottle of French wine is 100 francs. This used to cost an American $10. At the new exchange rate; it now costs $16.67.