The Impact of a Strong U.S. Dollar

[@Alanisbusinessacademy]

Due to conditions in Europe, the U.S. Dollar has strengthened against the Euro. Learn about the impact of a strong U.S. Dollar in our latest video.

[@Alanisbusinessacademy]

How does a strong U.S. Dollar affect demand for exports? Find out in our latest video:

[@灭共大左]

you explanation is much better than any other text book

[@Alanisbusinessacademy]

Glad to hear that! Thanks for the kind feedback.

[@Alanisbusinessacademy]

+Richard Sampson Unfortunately it isn't that simple and that makes a very big assumption. You're assuming that buyers will to pay higher costs due to exchange rates. We know based upon empirical data that generally consumers will demand less of a product as its price increases, which often forces businesses to lower their prices. Although the U.S. may benefit from being able to purchase the components needed to manufacturer certain goods, that does not mean they will be able to sell the finished good. If you look at earnings forecasts for publicly traded U.S. firms, many are predicting less than stellar results in part due to the strong dollar weighing on exports.

[@sarahwilson3804]

How about now 2021? There is inflation and shortages in the food market can the dollar strengthened or silver and gold would go up?

[@richardsampson3153]

Have you considered the point that in our globalized economy, inputs used in the production of goods and services can and usually does come from overseas as imports. So if the dollar strengthens against other currencies, it would make imported inputs cheaper so exporters aren't greatly affected as costs fall. Likewise if the dollar weakens, imported inputs become more expensive so while they may have a higher export price the higher import prices/costs counteract that benefit to a degree.

[@pleasecaparzo]

interesting point, i ve never thought about it, anyway, the invisible hand would interfere and try to equilibrate it, ultimately.

[@Photon-1927]

Thanks

[@tebikei]

Do you have facebook blog or group that i can follow?

[@nzshareman]

Thank you very good 1st it ever made sense to me i can see why Bill gave you some bucks Cheers

[@Alanisbusinessacademy]

That's great! Glad I could help.

[@thestranger2749]

This still doesn't make sense to me, if our currency becomes stronger we can import more for a dollar and cut our export prices to reflect the money saved. In other words how can this work if the currency isn't really "worth" any more or less its all relative for example, I buy 1 widget for 1 dollar and sell it for the equivalent of $1.24 then my currency appreciates 100% now i can buy 2 widgets for $1 and sell each one for $0.62 Which evens out to 1.24 for every dollar. So the only way it would work against us is if we were buying 2 for 1 and selling them for $1.24 each. I have no problem with making money, but are you saying the only reason why this concept works is basically because we want to buy low and sell high? so greed would hurt exports, not so much a strong currency. I'd really like some help with this i'm so damn lost.

[@shankarsolanki3th]

You are super real man

[@stomiball889]

Great content

[@ryanfrizzell736]

Impactful video!

[@thattimestampguy]

Strong Dollar = Happy American Tourists, unhappy Unamerican Tourists 1:08 Floating exchange rate stronger = I get more foreign money for the same $1 bill 💵 weaker = I get less foreign money for the same $1 bill Importers want a stronger dollar Exporters want a weaker dollar

[@jamesruscheinski8602]

do consumers look for stronger currencies to make purchases that cover inflation

[@andrean783]

Even the Swiss Franc strengthened recently... How does that affect the Swiss economy? Also will it affect the US / European economy?

[@Alanisbusinessacademy]

andre In a similar fashion as the U.S. It's great for importing goods from countries with a weaker currency (i.e. Euro). Unfortunately it tends to negatively affect exports as those goods are now perceived as more expensive due to the exchange rate.

[@andrean783]

***** Thank you for your response... Infact some Swiss watch makers were affected.. Its an interesting topic.. do you have any courses on currency markets, Interest rates?

[@Alanisbusinessacademy]

andre No problem. I do have a few videos on interest rates concerning their use in monetary policy. Are you looking for something more specific?

[@andrean783]

***** Yup I have seen your videos on these topics and they are very Interesting.

[@soto7774]

Where do you find out the strength of the dollar, say I wanna trade the crude oil inventory, but if the dollar is strong I can’t trade oil even if it’s inventory is higher than forecasted right?

[@jamesruscheinski8602]

stronger dollar helps consumers overcome inflation

[@aligncars10000]

I don't get why if I spend $100 USD to get 86 Euros I'm getting a good deal. It seems like I'm losing $14 in that case. What am I missing?

[@hgdfghb4571]

Everything in Europe is cheaper remember that housing food and transportation is much cheaper I felt the same way when I first started traveling but things are cheaper remember that

[@MrDonny27]

Mexico

[@jamesruscheinski8602]

stronger currencies have more purchasing power for domestic and export / import products; weaker currencies have less purchasing power for domestic and export / import products

[@briancurran1140]

👍

[@csbaca1]

Here in the States my retirement income is at $6200. It sounds like alot, but everything is expensive. So, where we travel is always to places like Mexico, Costa Rica, Chile. We have GREAT luxury vacations for roughly $3,000.

[@boldrich7225]

Thank you. I live in US and I go to Canada and our Dollar is $1.41 compared to the Canadian Dollar. Therefore buying goods in Canada I get 41% more with my BUCKS!!!!!!!!!!!!!. Thank you President TRUMP. We are winning Again. YAHOO!!!!!!!!!!!!

[@AYVYN]

Country A Prints 100 Dollars Their $1 product costs 1/100 of money supply. Country B Prints 200 Euros The Same Product is €2 and 1/100 of money supply. Country A implements a bad monetary policy that causes speculators to sell the dollar and deflate the currency. Country A sells 2 items for $1 and gets €2 Economists: *PROFIT*

[@AYVYN]

Especially when all your imports are from countries with even weaker currencies to meet export demand. Seems like a candle burning at both ends.