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To: GVTucker who wrote (173318)3/6/2003 12:44:25 PM
From: chomolungma  Read Replies (1) | Respond to of 186894
 
You should devote a lot more of your analysis on what happens to that 75%.

You didn't read my post very well. It said,"But that's only the beginning as competition for the sale of goods at home lessens and allows business to increase their profitability."

This is THE more important influence on profit margins. Margins are highly correlated with competition. Less competition allows companies to raise prices. When the dollar drops it makes foreign goods more expensive and lessens competition. This results in rising profit margins.

Take a look at the historical relationship between margins and the dollar. It's not perfect, but it's not bad.