Assuming all else is equal, which of these companies—Chrysler or Compaq—is likely to benefit more from a weak dollar?
Chrysler exports vans from the United States to Europe in competition with the Japanese. Similarly, Compaq exports computers to Europe. However, all of Compaq’s biggest competitors are American companies—IBM, Hewlett-Packard, and Tandem. Assuming all else is equal, which of these companies—Chrysler or Compaq—is likely to benefit more from a weak dollar? Explain.