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Trade & Exchange Rates

An examination of the relationship between exchange rates and trade flows.
What Is Dutch Disease?
An article on Dutch Disease for beginners which answers the question: What is Dutch Disease?
How Does the Value of the U.S. Dollar Impact Canadian Businesses?
A reader asks: "I am continually reading about the Canadian dollar value versus the American dollar value, however I do not fully understand how it affects each country. The increasing value of the Canadian dollar has caused less exports which would decrease the nations income. How does it affect the businesses in Canada? How does it affect Canadians and their spending?"
Why A Shrinking Trade Deficit Will Drive Down the U.S. Dollar
"Why A Shrinking Trade Deficit Will Drive Down the U.S. Dollar" examines why recent comments by Alan Greenspan about the future of the U.S. Trade Deficit drove down the value of the U.S. Dollar.
The Trade Deficit and Exchange Rates
Article answers the question "Since the U.S. Dollar is weak, shouldn't that imply we export more than we import (i.e., foreigners get a good exchange rate making US goods relatively cheap). So why does the U.S. have an enormous trade deficit?"

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