Well, that would suggest by itself that you didn't have a long term business.
Not necessarily. Our primary customer base is in the US. We are a distributor, and we carry lines from many different manufacturers from around the world. Our customers are primarily US-based dealers.
Many of the manufacturers we work with have other distributors in other countries to cover their respective regions. But due to the favorable exchange rate, some dealers in those regions are choosing to buy from us rather than from their local distributor. Where our distribution agreement with the mfr does not prohibit this, we are happy to take that business. But we see this merely as temporary "gravy" in addition to our core business (which remains strong).
__________________
巧言令色, 鲜矣仁!
Fine words and an insinuating appearance are seldom associated with true virtue!
--Confucius
Programs: US1, UA1K, Hilton/Hyatt Diamond, SPG Plat, PC Gold
Posts: 2,458
Quote:
Originally Posted by YVR Cockroach
The USD has been rising for a couple of technical reasons.
1) Investors/speculators unwinding commodity positions (as prices fall) and the stuff is denominated in USD so the USD rises as the commodities are sold.
2) Capital shortage/rationing as banks are holding onto cash and as multinationals deal in USD for financing, the value is being chased by scarcity.
Wait for the credit crunch to subside and the fundamentals that devalued the USD over the past 5 years will return, and with a vengeance given the additional $5-6 trillion debt of Fannie Mae and Freddie Mac now assumed by the U.S. government but conveniently kept off the books and the even-larger budget deficits (compared to the past few fiscal years).
I read an article recently that essentially mirrored this view - enjoy it while it lasts, because it's temporary and things will get worse than you've ever seen them before...
I tend to believe it, though I'm very much out of the loop on these economic issues. Looks like it's time to negotiate with the boss to get paid in Euros...
I read an article recently that essentially mirrored this view - enjoy it while it lasts, because it's temporary and things will get worse than you've ever seen them before...
A fair warning to all, this has the potential to reverse just as quickly. We've seen 20-30% drops (v USD) in many currencies which <i>could</i> turn around just as fast. The system is in flux that much.
That said, life here in the UK (paid in USD) is that much sweeter this week at least....
A fair warning to all, this has the potential to reverse just as quickly. We've seen 20-30% drops (v USD) in many currencies which <i>could</i> turn around just as fast. The system is in flux that much.
Yeah...swings between 1EUR=.90USD and 1EUR=1.60USD are quite possible. I don't see it leaving that range anytime soon.
Even with the pound at $1.60ish vs.the US dollar, the UK is still going to be much more expensive than the U.S. It would have to get down to the 1.20 area to make costs comparable.
