How do exchange rate changes affect international trade?
When the US dollar/or any nations currency is strong/weak, it makes our goods more expensive/cheaper and more affordable in overseas markets with weaker/stronger currencies. Our currency was strong for many years, it affected our trade deficit extensively since the cost of our widget was too high, one of the main reasons we have invested in manufacturing in places like China and India. Since we don’t manufacture much anymore, other than a few cars, some aerospace/defense I don’t think we are going to benefit very much from real trade, like food, textiles and other manufactured goods. I don’t blame the companies for going overseas and making jobs disappear on US soil, that comes from many variables, like cost prohibitive environmental policies, high cost of Workman’s compensation and frivolous law suits, por workmanship, but mostly the greedy shareholders of the companies that take the advise of the stockbrokers who make money if the stock goes up or down are to blame. It is usually a g
