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To: soccer_linux_mozilla

So many people on this thread have their assumptions bass ackwards. If the dollar falls, then the cost of American goods relative to foreign goods falls also. This means that American goods become cheaper and more likely to be purchased than foreign goods. So, the sale of American goods rises (i.e. exports rise) and the sale of foreign goods falls (i.e. imports fall). The largest market for the purchase of manufactured goods from all over the world is the American market.

The market success of foreign countries around the world largely depends on their ability to sell to the American market. The American consumer drives the economic engine of the world. If American consumers begin to buy American goods again, this is a problem for FOREIGN businesses, not American businesses. Its the foreign countries that will suffer because of a falling dollar, not America.


37 posted on 11/24/2004 10:36:30 AM PST by bowzer313
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To: bowzer313

Are the exports really going up? I haven't noticed a lower price of U.S. made products in the stores. Can't imagine people are buying more. Of course a holiday in the U.S. would be a bargain now.


59 posted on 11/25/2004 8:55:55 AM PST by floridarolf
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