posted by Eva .
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
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?
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