Should Canada's retail lower prices because of our stronger dollar?

Answer 1

It should lower the wholesale price of imported goods but much of the price of retail goods is service cost which will not be less.

Answer 2

If you owned a store in Canada, and you paid your employees in Canadian dollars, and you paid your taxes and utilities and lease and all other expenses in Canadian dollars, and you bought all your inventory in Canadian dollars ... and all your customers were still buying things because they all make the same amount of money as before in Canadian dollars ... why would you lower any prices?

If you did lower prices and therefore projected your company's revenues would fall 20% or 30% over the next year, how many of your employees will you have to lay off?

And what do you think that would do to the economy if every business in Canada realized their sales would be falling substantially because they all decided to lower their prices?

Answer 3

no, only exports and imports vary in price from a flucuating dollar. anything that stays in canada would not have a price affect