Story: U.S. Dollar Hurting Tourists and Global Businesses, 12/6/04
http://www.pbs.org/newshour/extra/features/july-dec04/dollar_12-06.html

Reading Comprehension Questions:

1. What is happening to the U.S. dollar?

2. What is causing the dollar's decline?

3. What is the federal budget deficit?

4. How does the federal budget deficit affect the value of the dollar?

5. What is the affect of trade on the dollar?

6. What happens to imports and exports as the dollar weakens?

Discussion Activity (more research might be needed):

1. Research the factors that contribute to the federal budget deficit. What sorts of things does the government spend money on? What might be some good effects of a large federal deficit?

2. Using Web sites like hotels.com and yahoo.com or travelocity.com, estimate the cost of a week-long trip to London or Berlin (include airfare, hotel and $200 spending money). Now estimate the cost of a comparable vacation to Mexico or another country outside of Europe, China or Japan. How much would both trips cost in U.S. dollars? In order to calculate the amount of spending money you'd have, use an online currency exchange calculator to figure out what you'd end up with in both countries if you converted $200. Which trip is more affordable?

Write a 300-500 word essay on any of these topics providing clear examples. Send your completed editorial to NewsHour Extra [extra@newshour.org]. Exceptional essays might be published on our Web site.