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

1. 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?

posted by Ms. Sue
2. 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

posted by Peter

## 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
2. ### economics

What effects will this change have on the exchange rate of the canadian dollar in terms of the us dollar? Good Canadian real estate market sends a signal to American construction companies.
3. ### 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.
4. ### 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
5. ### 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? (Round the answer to the nearest hundredth of a percent).

Toronto reflects more of the British culture rather than the French culture. TRUE? Which of the following Canadian region is best described as undeveloped because of its harsh climate and terrain? a. Northern Territories b.