[T50_Omaha8]

Consider an extreme example. Let's say originally the euro and the dollar are equal. American multinationals sell things in Europe and trade the currency back 1-to-1.

Now let's say a euro is worth two dollars suddenly. When American mutlinationals sell the same thing for one euro in Europe, they tarde the euro for TWO dollars. Suddenly their earnings double.

Similarly, any assets Americans have in Europe double in dollar value, while any assets Europeans have in America halve in euro value.

Does that help?

Edit: half =/= verb form