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Our currency and that of Canada is now equal in value
Message
De
21/09/2007 14:55:31
 
 
À
21/09/2007 10:58:45
Information générale
Forum:
Finances
Catégorie:
Capital
Divers
Thread ID:
01255918
Message ID:
01256008
Vues:
16
Yes, I understand, but the bottom line is that in today's world, companies have to be able to compete globally. If they can only compete when their country has a devalued dollar, then there is a problem. How was the U.S. able to compete on the world market all the time that their dollar was higher than ours. Canadian companies have to learn to survive in difficult markets, or they won't survive at all.

>That goes deeper than that just the exporters. All the companies that does business with the exporter will also be affected, even if they focus on other qualities other that just low price.
>
>We also have to deal with our geographic location. USA is our closest neighbour and we need them, like it or not, to grow because our market is just not big enough. If we loose business with the US, shipping elsewhere will necessary cost more because of the distance. Doing business with a greater market enable the company to lower the production cost because of the volume. If the market is reduced, the production cost will raise and the company will be vulnerable to the outside competitors.
>
>>That's really a problem for exporters, and it's really only those who depended wholly on the low Canadian Dollar in order to be viable. Especially in this volotile world, companies need more imagination than that, and if they don't have it, then yes, they'll probably have to close. Far too many companies have nothing more to offer than low prices on the world market. I hate to say it, but in these times, that's just not enough.
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