Quote:
Originally Posted by Hakan
Retailers really have no incentive to lower prices. It's not exactly a market failure. People are willing to pay X dollars for a book, or movie ticket or car. The value of the currency has little to do with the price.
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The article points to the decrease in power of foreign suppliers because of our stronger dollar.
Canada's Top 10 Import markets in 2006:
(Country, % Share, CAD Xchange rate)
United States, 54.9 , 1CAD = 1.035USD
China, 8.7 , 1CAD = 7.77CNY
Mexico, 4.0 , 1CAD = 11.21MXN
Japan, 3.9 , 1CAD = 118.64JPY
Germany, 2.8 , 1CAD = 0.72EUR
United Kingdom, 2.7 , 1 CAD = 0.51GBP
South Korea, 1.5 , 1 CAD = 946.11KRW
Norway, 1.4 , 1CAD = 5.54NOK
France, 1.3 , 1 CAD = 0.72EUR
Algeria, 1.2 , 1 CAD = 70.94DZD
Total of Top 10, 82.4
Seeing as how over half of our imports come from the US, and a majority of the rise of our dollar can be attributed to improved strength relative to the US, it is a somewhat fair argument to say that some businesses may be in a position to decrease their prices.