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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (57876)	4/28/2002 10:38:05 AM
From: Steve Lee	Read Replies (3) \| Respond to of 99280

"Doesn't a cheaper $ mean that US exports are cheaper? If thier products become cheaper do you think that US companies will selll more of them or less of them?" They might sell more initially. But the US imports more than it exports. So the imports will get more expensive by a bigger factor than the cheaper exports increase their revenues. In other words, revenues will go up but costs will go up even more. That is not good for the US. Eventually, the US will adjust to having domestic production support a greater proportion of consumption, but there will be hard times until that adjustment takes place.