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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: tonywyatt who wrote (22537)	12/3/2004 3:12:25 PM
From: kodiak_bull	Read Replies (1) \| Respond to of 23153

Tony, Yes, that is one aspect of it. At its weakest the Euro traded at something like one Euro to $0.81 dollars, now it trades a Euro buys $1.31. For a foreign manufacturer whose currency has strengthened along those lines versus the dollar, what that means is that if he is purchasing American labor in a facility where the blended cost is $13.10 per hour, he can now purchase that labor for 10 Euros. Two years ago he had to pay E16.17 for that same hour; his US labor costs have been cut by more than 40%. Foreign entities will seek to expand here, or so the theory goes, and cut back operations in other areas. The American laborer sees no difference, he still receives the same $13.10 in pay & benefits. Kb