Baltimore Business Daily

Exports and their relation to the value of the dollar?

Could somebody explain to me how exports and imports work and how the value of the dollar affects them?

Public Comments

1. Nope, but I bet your textbook can.
2. If you're an exporter, u want the dollar to have a low value; If you're an importer, u want the dollar to have a high value. This is because transactions occur in the currency of the buyer. Basically, if ur gonna be BUYING (importing), you have to do this in the currency of the person you're buying from; and if you're SELLING (Exporting), they have to do it in your currency. What this means is if I'm an Australian cricket bat manufacturer wanting to export my bats to the USA, I want the AUD to have a LOW VALUE, so when I receive my money, it's worth more to me (than would be the case if the AUD was high) Similarly, If I'm in the USA, and I want to import cricket bats from Australia, I want my USD to have a high value as this would give me more purchasing power, and I;d be paying LESS in real terms.