http://www.cbc.ca/consumer/story/2007/09/28/loonie.html?ref=rss
How will this affect Canadian exports to the US...
Canadian Loonie closes above US Dollar...
by zeroday 29 Replies latest jw friends
-
-
Homerovah the Almighty
Not well I would guess , Americans may look elsewhere to purchase raw goods in other markets around the world
Has the US dollar lowered itself against other moneys around the world ?
-
orangefatcat
well all I can say is this, when our dollar was stronger than the american dollar, most canadians travelled to the usa for bargins, I recall when I was a teenager we often took trips across the the border to buy clothing. I was okay. It took the canadain dollar over 30 years to climb back up there.
what this means on the world market , I have no idea, guess we have to wait and see.
-
Homerovah the Almighty
There is an apparent concern with the film industry here in Vancouver now that the 2 dollars are at equal par
Allot of the industry that started here was based on the fact that it cost 30% cheaper here than to film in the States
not so any more. There is both a down side and an upside to the situation, speaking for us Canadians
-
zeroday
Canada is the US number one trading partner. I drive truck and have hauled alot of auto parts from Canada to US manufactures even with the advantage of Government health care I wonder if that industry will be affected. When the US dollar was stronger than the Canadian dollar I never saw any advantage when visiting Canada it seemed Canadian prices for same US items were so much higher to offset any currency difference...
-
Homerovah the Almighty
Yep, I hear where your coming from, things do cost more up here in general and it's going to cost allot more now with the exchange rate,
the other side of the coin is It's going to make things better for us Canucks, when we travel to the states because just about everything is cheaper there
In theory if the 2 dollars stay at par for along time everything should equal it self out over time
The Bush administration may be to blame for this scenario
-
hillary_step
This is very bad news for exporters.
I have noticed a rather ridiculous pride being displayed by the media in the strong Canadian dollar, as if somehow the "mine is bigger than ours" attitude is good for the Canadian economy in the long run. It is not. The weak US dollar and the strong CAD dollar will spell long-term misery for the manufacturing industry and immediate pain for tourism.
Of course many Canadians relish the idea of being able to travel to the states and wave their dollars at the Americans while they stick their noses in the clouds. What they do not take into account is the pain with which they will be importing US items into Canada. The Borders are not the walk-over they used to be in this regard.
Finance Minister Flaherty, while smiling with inane pride at press conferences, was panicked enough to convene emergency meetings on the matter with both ministers and industry. This one-upmanship that many Canadians have against the US is very childish and is seen in technicolor where it comes to their currency.
Overlooked is the fact that actually the CAD$ is not strong, it is just strong against a weak US$. As the US$ will take years to regain its hold on the currency markets, devaluation is an option that the CAD government should seriously consider for the sake of its exporters and tourist industry, which are losing thousands of millions each year due to the currency exchange.
Of course this will never happen while Canadians have a national inferiority complex. Watch the unemployment figures over the next couple of years.
HS
-
zeroday
The Bush administration may be to blame for this scenario
As you know the weak US dollar helps our exports so in that regard it helps US manufacturing. Being in the trucking industry I have seen big accounts won and lost over something as small as .05 cent per mile freight rates. US manufactures are very cost sensitive and one of the main reasons auto manufacturing migrated to Canada was because of the National healthcare and the strong US dollar against the Canadian dollar...
-
nvrgnbk
This one-upmanship that many Canadians have against the US is very childish and is seen in technicolor where it comes to their currency.
And here I thought the childish one-upmanship against the US was confined to inaccurate "our-beer-is-stronger-than-your-beer" jokes.
-
zeroday
inaccurate "our-beer-is-stronger-than-your-beer" jokes.
That's if you want to call Budweiser "BEER" I much perfer Canadian beer anytime...