Quote:
Originally Posted by FlamesAddiction
Actually, the whole reason I started thinking about this is because I am looking for a car.
Someone is going to have set me straight, because clearly don't understand how any of this works, but I was under the impression that because of free trade, the market values for products produced in both the US and Canada should be fairly unversal. Of course, with our low dollar (and the subsequent lower buying power), prices in Canada were adjusted to account for that.
But with our dollar approaching par with the U.S., howcome prices for goods don't reflect this? Shouldn't they be changing?
|
In the longer run yes, there is a bit of a lag though. Car manufacturers in particular will say that Canada had a free ride for years when the dollar was worth 65 cents US.
BTW many people buy cars in say Montana then bring them back, you just pay a admin fee and GST at the border.