Quote:
Originally Posted by Juventus3
That's interesting. I'm not an expert nor am I contending what you say...but I have a question. This is not just a result of the canadian dollar going up, but also a result of the USD going down, if compared against various currencies. How would it benefit the US to buy from another market instead of Canada if their dollar is not worth as much no matter where they turn?
I think that makes sense...
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I don't think it would benefit them. If the USD compared to other currencies goes down at the same rate versus the CDN dollar, then I can see this not affecting their purchase price options to an extent. Of course their price may go up in order for the exporters to cover their extra losses, but in my industry they are very reluctant to buy when costs go higher, instead they hold tight.
Unfortunately, if we don't raise costs and the industry won't accept higher costs, then we can't make up for the loss in income that comes with the currency conversion. But Claeren makes a good point. This is just how my company is affected and perhaps my industry as well, but doesn't give a picture on what's happening overall. Oil&Gas is very cyclical and susceptible to cost changes and in this way it probably differs from other exporting industries.