Now that the dollar is strengthening, it is a really good thing for Americans who want to buy things from abroad or for people, namely business people, who want to or have to travel. It makes it cheaper for them to buy plane tickets, goods, etc. I know for myself, as I am thinking of moving to Europe after graduation, I am very excited about the depreciation of the Euro.
Unfortunately, it may not be as much of a good thing for people who are coming from other countries to the US as the exchange rate is now higher. This means that for people who work in the tourist business in America, they may receive a very large decrease in their customer base for a while until the dollar weakens again.
8 comments:
I believe overall this is not a good thing for the united states. A strong dollar is good but it means that people will be supporting foreign economies rather than domestic production due to an increased valuation of the dollar overseas. Although a strong dollar is a good sign for our economy I believe it will detrimental to the economy if we keep exporting purchases overseas.
A stronger dollar is a double edges sword. While it does mean the economy of the United States is becoming stronger, it also on the flip side means an outflow of US funds into foreign markets where the dollar goes farther.
Another down side to this is that not only will people be investing into other economies but also that foreign investors will not be investing their money into the U.S economy. Foreign investment is always a great stimulation for the U.S economy and although a stronger dollar means the economy is strong, it will be hurt by the decrease in investing into the economy.
Like the article said, it is more likely that this will lead to less foreign travel to the US, but the subsequent gains for other countries by US travelers probably won't go up much because most Americans don't have passports.
The dollar appreciated means U.S economy is growing and it's cheaper to travel abroad. However, this can hurt the economy since it'll be more expensive to export and cheaper to import, which might cause trade deficit. As an international student, i find this very terrifying as it's more expensive more me to study in the states.
This can hurt the economy because the dollar is able to go further in foreign markets, that is where we will spend money, increasing our trade deficit. Like Connor said, it is a double edged sword, it has its pros and cons.
A stronger dollar has it's pros and cons for the U.S. economy. Yes, it does mean the U.S. economy is getting stronger, but it also leads to us decreasing our exports because it is more expensive. This could hurt the U.S. by increasing our deficit even more.
This is great news for the United States because a stronger dollar means a stronger economy. However, like everyone else has mentioned there are pros and cons to this predicament. From personal experience, I would have been very beneficial to have this current exchange rate from the dollar to the Euro about a year ago because the exchange rate would have allowed me to travel more when I studied abroad in Madrid. This is a good situation to be in for Americans traveling abroad, but this can definitely affect our tourist industry in America because foreigners may be less willingly to travel due to financial reasons. It will be interesting to see how this industry is affected by the changes in currencies.
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