this is the ariticle: http://www.msnbc.msn.com/id/18235574/
the article expounded on the advantages and disadvantages of a falling dollar value as compared to euros. the good thing about the falling dollar is that it may actually boost some industries, tourism, especially, stands to benefit from a weak dollar. the more dollars you get for a euro, the cheaper it is to visit or even study abroad in the U.S. other industries are those that export most goods and those that produce goods in european countries and then turn their profits into dollars, on such company is IBM, which, due to the weak dollar, made a 7% increase on profits as compared to the 4% it would have made had it left its earnings in euros. however, the disadvantages of a weak dollar far outweigh the advantages for the american consumer. not only will travel to europe becoem increasingly expensive, but imported goods from europe will increase as well. and analyists see no sign of a turnaround in the dollar's value anytime soon.
the first thing that came to mind when i read this article was that it's good that everyone from my class is going to visit europe now, because it sounds like it's going to become much harder and more expensive every year. also, i know that a falling dollar is bad, but isn't the fact that more ppl are coming to visit america good? the article mentioned that many europeans can now afford 2nd homes in the U.S., and, while i know that that's not enought to revitalize the economy, it's a positive influence, right?
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4 comments:
I think that even with more europeans coming to the U.S. and dumping money into our economy through tourism it will still be outweighed by the increase in price that we will be paying for imported european goods. I dont think increased tourism is enough... but it will definitely help
Give me a break. Why on earth should they get two homes when some people dont have any. Jeez I wish people were less selfish and a little more empathetic. Any way as to the euro economical side. The fact that the dollar is falling is bad, i dont think tourism is gonna help either cause it isnt gonna boost the dollar back up.
It all becomes part of that cycle - just like the economy will rise and fall, so will the value of currency. It will always happen.
Good & bad to both sides - as mentioned, we do bring in more tourists, but imported goods become more expensive (at least from Europe). The other part there is also that just because the dollar is weak with the euro doesn't necessarily mean that it is weak with ...the yen, yuan, peso, etc. (At the moment, we have a weak dollar overall, but you get what I mean).
Does it even out? not really. We import so many goods, it would take a lot in order for our imports to match any tourist dollar that would come in from a weak currency. C'est la vie. sad, hey?
I agree with Katie in that tourism will not be enough. I believe the increase of monies into our economy will slightly help, though the falling value of the dollar will still balance the situation out. Leaving us back at square one. Also, I also agree with Erica's point in that a boost in tourism will not necessarily mean that there will be a boost in the value of the dollar.
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