Which of the following groups would suffer the worst financial impact as a result of an increase in the value of the Australian dollar? (A) Japanese shareholders of an Australian bank (B) Australian producers selling wine to New Zealand (C) Australian car makers purchasing inputs from Italy (D) American travel agents organising tours for Australians - HSC - SSCE Business Studies - Question 20 - 2012 - Paper 1

• (A) Japanese shareholders of an Australian bank: They may experience some impact due to currency fluctuations but are not directly adversely affected as they receive dividends in AUD.

• (B) Australian producers selling wine to New Zealand: They will be negatively affected, as their goods will become more expensive for New Zealand customers, potentially reducing sales.

• (C) Australian car makers purchasing inputs from Italy: They will benefit because imports become cheaper with a stronger Australian dollar, leading to reduced costs.

• (D) American travel agents organising tours for Australians: They may benefit as Australians traveling abroad can take advantage of a stronger currency to spend more money on tours.

Based on the evaluation, (B) Australian producers selling wine to New Zealand are likely to suffer the worst financial impact as their goods become less competitively priced in the New Zealand market.