Quote:
|
Originally Posted by NoCarrier
Huh? I think you got it all wrong.
Economy 101 :
If the dollar is strong, this means that it's going to cost MORE for the importer elsewhere in the world to buy our products. It's not going to increase the volume for our export companies. Those companies will have to lower their prices to sell the same volume, thus, losing even more profits.
|
What you state is true, as well as the opposite. You said exporting companies must be crying and this thread is about a weak dollar, not a strong one. Companies exporting from the US to other countries enjoy it because foreign countries can now buy US products for cheaper, increasing demand and volume with it. While natural output stays the same over the long term; short term fluctuations like this are common leading to more economic output. Importing companies suffer, but we have a trade deficit not surplus so overall this is positive. I did quite well in econ thank you.