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Claeren · 09-20-2007, 08:23 PM

Yeah, but you are talking about one company.

The Canadian economy as a whole is valued in a way that disadvantages your single company but that properly values the larger whole.

IF what you said was true of all companies in the economy Canada would have a large trade deficit. We do not.

More specifically, the HUGE amount of our natural resource exports mean that the TINY value comparatively of our manufactured goods is not important to the larger whole of the economy from a strict valuation perspective. Long term, IF our resources lost value and we came to depend more on higher value exports like your own, our dollar would fall to reflect that fact. In a perfect economy your company would use the high value of the dollar to import productivity enhancing technology or fund importnat R&D that would further improve the value of your exported product base. Germany has an incrediably high dollar yet still manages to be a major exporter of important manufactured goods.

Diversifying the export options or rising domestic consumption would be further options of offsetting sagging American-market profit margins. Remember that this has as much to do with Americans being poorer as it does Canadians richer. That is another way of looking at the reduced profitability found in American-bound exports.

Claeren.

09-20-2007, 08:23 PM	#222
Claeren Franchise Player Join Date: Jul 2003 Location: Section 218 Exp:	Yeah, but you are talking about one company. The Canadian economy as a whole is valued in a way that disadvantages your single company but that properly values the larger whole. IF what you said was true of all companies in the economy Canada would have a large trade deficit. We do not. More specifically, the HUGE amount of our natural resource exports mean that the TINY value comparatively of our manufactured goods is not important to the larger whole of the economy from a strict valuation perspective. Long term, IF our resources lost value and we came to depend more on higher value exports like your own, our dollar would fall to reflect that fact. In a perfect economy your company would use the high value of the dollar to import productivity enhancing technology or fund importnat R&D that would further improve the value of your exported product base. Germany has an incrediably high dollar yet still manages to be a major exporter of important manufactured goods. Diversifying the export options or rising domestic consumption would be further options of offsetting sagging American-market profit margins. Remember that this has as much to do with Americans being poorer as it does Canadians richer. That is another way of looking at the reduced profitability found in American-bound exports. Claeren. Last edited by Claeren; 09-20-2007 at 08:51 PM.