QUESTION 1: Although Apple’s general business model appears strong, what risks have resulted due to currency fluctuations in the global exchange market?

QUESTION 2: What are the drivers behind the increased value of the U.S. dollar? Is it something that Apple can control? Explain your answer.

Answer preview

QUESTION 1: Although Apple’s general business model appears strong, what risks have resulted due to currency fluctuations in the global exchange market?

A strong dollar against other currencies had caused many companies in the US to lose their revenue. More than 60% of Apple’s revenue comes from markets outside the US. Therefore, a strong dollar against other currencies implies that the value of Apple goods will be relatively expensive abroad. According…

 

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