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Showing posts with the label price of labor

Countering the Negative Influence of the American Dollar on Exports

The trade gap bumped to $46.6 billion in December from $39.8 billion in November showing a move in the wrong direction. Exports are somewhat complex and even though new businesses have been recently attracted back to American shores they have not yet taken hold in full force. Likewise, the rise of the value of the American dollar means that exports are expensive and imports cheaper. Despite the damaging effect of a higher dollar there is something that can be done to counter this impact and improve exports. It should first be remembered the any number and any dollar is subjective in value. This means that its value is only as good as it relates to some other item. For example, the number two is a higher number than one but both are relative to the other. One must still relate to some measure such as inch, centimeter, etc... that reflects an actual distance in our environment. The same can be said for the dollar that is compared against some other metric to determine its value. One