why does the strength of a currncy effect exports?

Question

how does the strength of the £, effect a british companys exports. say to the us.( strong £ weak $ ) if the parent company is us based.(jaguar-ford). and what are the advantages/disadvantages if the currency strengths were reversed

Answer 1

if it is strong pound , it would be more expensive for other countries with weaker currencies to buy their products, just like a store has to adjust their prices with supply and demand, so do countries.

Answer 2

A weak currency makes imports more expensive while making exports more affordable to the importing country.
In the example of Ford/ Jaguar fewer Americans will buy Jaguars because the price has gone up. This will probably result in a net loss of sales for Ford because not everyone who would have bought a Jag will buy a Ford product instead. Some will buy Cadillac or some other make. Since Fors are built in Britain the exchange rate will not affect Ford sales so much there.

Answer 3

The stronger money can buy more of the weaker money.

I am in Korea so let's look there. When I came her the $ was $1.00 - 1300 Won. Than meant that my $ cound puchase a lot of W so my buying power was quite good. For me, Korean products wre a bargain. Now the $1.00 buys 900W
With Korean currancy I can buy more $ that now makes US products cheaper for me to buy.

Look at it from the car sales you spoke of. At this time a Britich product costs more $ because the protich product is based on the value of the #. You can buy fewer #'s now than 5 years ago. Therefor British products are more expensive for the US buyer.

In trade internationally, the nation with the strong currency will have fewer exports because, relatively, their product costs more. Right now products from the US are bargains. Products from foreign nations purchased in the US are very expensive because people must may more $ for the the same product than they did when the exchange rate was more favorable to the $. That makes it difficult for British producers to sell products to the US market - especially in view of the current economic crisis brought on the by mortgage industry. That only adds to the misery.
ADVANTAGE & Dis. When world money markets are so volitile it really influences the markets and insudtires that are affected by international products. Air travel, Tourism, consumer products, stocks, real estate and even, to a lessor degree, food prices are all influenced by weaker or stronger currency. Tha average person is not affected until they become involved with a foreign product or service. But Industry and economics are really hiy by wide swings in trading currencies. That influences sales, therefore production, therefor employment and.... and.... and. It is like Dominoes. One falls and the others follow in sequence.
Jag - though owned by Ford is made in England and little affected by the $$ fall. But export one of them to the USA and they buyers will think twice before paying 10 to 20% more for the same product that was much cheaper 6 years ago.

Answer 4

It is the comparison. When the currency is week compared to that of another, less goods can be purchased for the same money if the currency has not weekened. Therefore the fluctuation affect import and export. o ofset the changhe, some governments impose/relax duties on the imports/exports.

Answer 5

Imagine that you are buying my products. I am from Mexico and my product costs 10 pesos which is 1 £. If your currency is weak , in 2 or 3 years my product might still cost 10 pesos but the exchange rate changes. Now for you it will cost 3 £. How many can you buy now with 30£?

Does that make sense?

Answer 6

in the beginning, droop is the quantity that the concrete drops from a particular droop cone. A 4" droop potential that that is heavier than a 5" droop because of the fact it slumped a million" much less. much less water will reason a heavier mixture. much less water does make it greater suitable. you additionally can upload fibers, that are fiberglass strands that mixture into the concrete to help upload substantial potential. you additionally can pass from a 3500psi mixture to a greater suitable 5500psi case in point. Highways use an enhanced psi score. Aggregates are in basic terms a small part of the mixture. Water, cement, aggregates, and sand moisture content cloth all have a place interior the potential. additionally reinforcement which includes steel rod, (rebar), and steel mats help immensely. perfect of all, you could call your community concrete provider provider alongside with your dimensions and purpose and that they could desire to recommend you with all the above to your application for unfastened. do only not call first ingredient interior the morning while they are lining up vans to pass out for thier first run.

Answer 7

this is simple economics....do your own homework

hint: macro, not micro