Final answer:
The dollar has appreciated against the English pound if its price drops from $1.30 to $1.10, demonstrating the dynamic nature of exchange rates that can substantially affect international business.
Step-by-step explanation:
If the dollar price of the English pound goes from $1.30 to $1.10, this means that the dollar has appreciated against the pound because fewer dollars are needed to buy one pound. Conversely, we could say that the pound has weakened against the dollar.
Looking at historical trends, exchange rates can be very volatile. An example is evident with the Brexit vote, where the pound dropped significantly against the dollar shortly after the event. Such changes in exchange rates significantly affect international business transactions, profits, and investment decisions.
For instance, a hypothetical consideration of an investor expecting the pound to increase from $1.50 to $1.60 demonstrates the impact of currency fluctuations. Investors might prefer a stronger pound to gain more dollars for their investment when converted to U.S. currency.