(Eli5)Why will US companies, or companies in general thrive when US dollar value is strong? Does it have something to do with currency conversion?
In: 1
It’s different for different companies.
Yes, currency conversion matters. A strong dollar makes imports cheaper and exports more expensive for companies inside of the US (and opposite outside of it). That means if you buy steel from china to make cars that you sell to US costumers it’s great when the dollar is strong because you get more steel per dollar. If you export almonds you grew in california to europe then a strong dollar is bad for you though, because your costumers can pay less.
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