I agree with this 100% but the rapid change in the dollar couldn't have been predicted by just about anyone (relative to when the changes would have needed to be initiated)
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So the magic question is "Those who import using US$, have you kept your prices relatively stable in comparison to 1 year ago or have you lowered your prices to recognize the savings you have and pocketed/invested the surplus?"

No judgements being made, just an informal poll. Not one competitor in my industry has lowered their price (far beyond just my 7 distributors) so you would not be alone.

I haven't seen advertising in the papers/flyers saying "New Lower Price: we pass the currency savings along to you!" or something to that affect. This is the reason that I find difficult to say that people should be using the low US$ to buy new equipment. That's fine if you are buying direct from the US but many companies sell their products through Canadian channels which have not changed their prices.

The competitors in my industry who sell at fixed Canadian prices from the US have not lowered their prices to their Canadian buyers either so no savings to be passed along here either.

I think it's more academic that our strong dollar is good for business.

As Ken said. We don't have any choice but to adapt.

Thats it, I'm getting a moderator over here NOW http://www.flyertalk.com/forum/mad.gif Really, who do we think we are having a healthy debate about Canadian economics http://www.flyertalk.com/forum/rolleyes.gif

http://www.flyertalk.com/forum/wink.gif


airbus320 you mean you were gone http://www.flyertalk.com/forum/wink.gif Welcome back airbus320. Hope your time away was good http://www.flyertalk.com/forum/smile.gif

I haven't seen advertising in the papers/flyers saying "New Lower Price: we pass the currency savings along to you!" or something to that affect. This is the reason that I find difficult to say that people should be using the low US$ to buy new equipment. That's fine if you are buying direct from the US but many companies sell their products through Canadian channels which have not changed their prices.

Thats because most of us in the Import Biz buy US $ futures, so we dont see the savings yet.
And if not "what are you nuts" we are going to buy a new Porsche! http://www.flyertalk.com/forum/biggrin.gif:

Cattle Thanks. I was in YHZ during the hurricane. It was Juan hell of a storm. http://www.flyertalk.com/forum/biggrin.gif

I think it will affect my profession, Professional Engineering, positively. Canada, for a number of reasons, has had lagging productivity and a lesser degree of technological automation in its industry.

A stronger dollar means business will have more incentive to become more competitive, and with Paul Martin becoming Prime Minister, it is possible that other barriers to productivity growth, ie: Canada's labour laws, may be relaxed as well.

All positive developments for Professional Engineers, since we are the profession that is called upon to implement technological change in industry.

I don't pretend to know a lot about economics. I never studied it in school. One thing to keep in mind is that the rise of Canadian dollar is against the USD not against the Euro or British Pound. All major curencies are gaining on the USD right now. We are not alone in this boat. The U.S. needs the low USD to help its own exporters win back much of the ground lost to other countries.

It also shows that Canadian exporters have for too long been too reliant on an easy access market called USA. Its like putting all your eggs in one basket. Do you put all your RRSP into one stock or one mutual fund? Sure our common language, close proximity, history all play a role but being too reliant on one country means you are at the mercy of their decisions that could really hurt you. Just look at Beef, lumber, wheat export to the U.S., they slap on the tariffs and we are up the creek because all our eggs are in one basket. If you are diversified in your export customers base, then you still have other sources to earn your income.

Right-wing think tanks have for years complained our low dollar contributes to the decline of our standard of living. A strong dollar will in the long run be better for this country. Our homegrown companies can now afford to buy some American companies and become stronger and more profitable. I think we are on the right road.

Back in 1988, the CAD was at $0.90 USD. How did our business compete back then?

Just my two cents.

Not hurting me. Didn't hurt when it went down (other than vacations to the USA) and doesn't hurt me on way up. Everything adjusts in time. It is the rapid change that is the problem. A slow rise over several years would have been absorbed much easier (although it might have been like the experiment with the frog and boiling water--put the frog in boiling water and it jumps out; gradually raise the temperature of the water the frog is in toward boiling and it dies). Maybe we need shock treatment to improve productivity etc.

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The rise of the CDN$ has been great for me http://www.flyertalk.com/forum/thumbsup.gif http://www.flyertalk.com/forum/thumbsup.gif

I pay for most of my airline tickets in USD because I depart from BUF, and a typical west coast round trip now costs me less than $300 Cdn. It also means I have more spending money when I travel abroad. I hope it rises to .80 by the end of the year http://www.flyertalk.com/forum/smile.gif

There's no better time for this to be happening just before the winter season, when most of the produce in our supermarkets is imported.

I think the rising dollar is a wake up call for Canadian companies to become more productive. Hopefully it will also diminish the influence of unions and "old school" way of thinking. Canada needs to focus on creating wealth in Canada. Strong currency, low taxes, and less socialism would achieve great things for everyone.

Well, the CAD has been rising against the GBP as well, though not as dramaticly. I've lost $375 in currency fluctuation on my BA MCO since February.

[quote]<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Ken hAAmer:

Quote:

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I've lost $375 in currency fluctuation on my BA MCO since February.

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You should offer to back the new Iraqi Dinar with that thing! http://www.flyertalk.com/forum/biggrin.gif

That M(onster)CO wouldn't have lasted nine months in these hot little hands.

I'm in Cattle's corner on this one, Them distributers and suppliers must lower prices. Sure they hedge, so do exporters. Hedging can't be too long term though (usually max = one year) and very few hedge their entire forcasts.

There is no reason we shouldn't be seeing across the board drops in all sorts of products. The ones that really irk me are the mass produced items. Something like a HP notebook which Future Shop or Staples buy from Canadain distributers in CDN$ who in turn buy it from HP Canada in CDN$ who's costs and profits are in US$ (for the most part). Everytime the CDN$ goes up HP makes more on the amount paid to them by the distributer.

If a US consumer were to buy that product in Future Shop it can cost hundreds more then he would have paid for it in Circuit City. A year ago, those prices would have been relatively the same.

I don't think any of us doubt that eventually we will have some price parity, but the dramatic rise in the CDN$ calls for some dramatic price concessions.
Productivity is not the main issue here - international price parity is. Whatever the exchange rates happen to be at should result in fair prices across the board.

I'm working on parlaying it into two mega-mileage RTWs that will gain me significant status in both *A and oneworld. But I'm waiting until the new year to pull it off.

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John Manley thinks that the hike in the Cdn $ will be felt next year

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