Business

posted by .

If you’re a Canadian exporter would you like to see a higher Canadian dollar or a lower Canadian dollar in relation to the US Dollar? Explain using an example.

I would like to see what perspectives different people have

  • Business -

    Suppose you make a widget for Canadian $0.60 each. You sell it for Canadian $1.00 each.

    1 Canadian Dollar equals 0.80 US Dollar. So you get U.S. $0.80 each.

    But what would you make if each Canadian dollar were worth U.S. $1.00 each?

  • Business -

    A lower Canadian dollar. This means that other countries have more buying power over your countries currency, and will cause a couple of things to happen. It will make them buy more of your product as it costs less to them. Secondly if you were to charge slightly more than what the conversion is for $1 of the country you are trading with, you will be making money not just on the sale of your product but also on the conversion of the money if you sell in their currency instead of CAD. It works for any country that has a higher dollar value than that of the CAD

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math, rates

    Which rates are equivalent? 6 U.S. dollars = 18 U.S. dollars 8 Canadian dollars 20 Canadian dollars 6 U.S. dollars = 9 U.S. dollars 8 Canadian dollars 12 Canadian Dollars 6 U.S. dollars = 9 U.S. dollars 8 Canadian dollars 16 Canadian
  2. statistics

    I have 6 bills that total $63 and there are no $1 or coins?
  3. MATH!

    If the Canadian dollar is worth 49% less than the U.S. dollar, then the US dollar is worth what percent more than the Canadian dollar?
  4. economics

    The US Dollar is en route for depreciation, analyze how the US dollar depreciation may affect the Canadian economy. (this is an essay question for Macroeconomics, any insight or links you could help me with would be appreciated.)
  5. economics

    What effects will this change have on the exchange rate of the canadian dollar in terms of the us dollar?
  6. Math

    Many nations compare the value of their currency to the US dollar. On a day early in 2009, $1 CDN (1 Canadian dollar) was worth $0.8290 USD (US dollar). This is known as an exchange rate. On the same date $1 USD could be used to buy …
  7. international business

    Assume you are a Canadian importer of goods. You purchase $5000 worth of chocolates from Belgium, $6000 worth of soaps from France, $10000 worth of teas from India. Evaluate the Canadian currency over a period of two weeks. Choose …
  8. Finance

    The spot exchange rate for the Canadian dollar is Can $1.14 and the six-month forward rate is Can $1.17. Calculate whether a U.S. dollar or a Canadian dollar is worth more.
  9. Math

    If a Canadian dollar is worth US $1.02, how many Canadian dollars would you need to buy something that costs US $29.95
  10. Economics

    1. What policy does the Bank of Canada follow when the Canadian dollar is strong?

More Similar Questions