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lets assume - orange juice producers are competing against one another one from the USA and one from Spain each only employs people and buys ingredients from its own country will assume the US company can export frozen concentrated orange juice in two dollars per pound whereas the Spanish one can do it at one gyro 95 if the exchange rate is a dollar and five cents for one euro it means a pound of Spanish orange juice cost about two dollars and five cents the Spanish company is currently a bit less competitive but that can change maybe oranges become cheaper in Spain perhaps labor costs go up in the United States or taxes go down in Spain and so on however a weakening of the euro would be perhaps the most obvious thing which boosts the competitiveness of the Spanish company if the euro would drop and it would only cost one dollar to buy one the Spanish orange juice would only cost a dollar ninety five cents compared to the two dollars the US company charges the same way all companies