When European computer firms switch from U.S.-produced software to software
produced in India, Israel, and other nations, the demand for U.S. goods (software)
falls, so the demand for dollars falls. The dollar depreciates.
c. When international investors become aware of new, high-return investment
opportunities in East Asia, financial investors will switch funds from American assets to East Asian assets and thus they will supply more dollars to the foreign exchange market (in exchange for East Asian currencies.) The dollar depreciates.