The Mudcat Café TM
Thread #105787   Message #2185407
Posted By: Little Hawk
02-Nov-07 - 09:35 PM
Thread Name: BS: Low US dollar, high Canadian dollar...
Subject: RE: BS: Low US dollar, high Canadian dollar...
I'll explain it in terms even a complete dumbass can understand, for "slick"'s benefit.

1. There are about 10 times as many people in the USA as in Canada. The USA is the biggest market for Canadian industry. That means that Canadian manufacturing businesses really need those American customers in order to prosper.

2. If the Canadian dollar is strong, then Canadian businesses start losing their American customers, because the Canadian goods become more expensive. That causes Canadian businesses to fail, and to lay off Canadian workers.

3. If the US dollar is weak, Canadian consumers start shopping for American goods instead of locally made Canadian goods, because American goods are now cheaper. That again hurts Canadian businesses.

4. If it's more expensive for Americans to shop in Canada, because of their weakened dollar, then they won't come to Canada, and our tourist-based industries will suffer. That again hurts Canadian business.

Do you now understand why a stronger Canadian dollar is not so good for Canada???????????

Now go listen to Puff Daddy and chillax for awhile.