- August 23, 2022
- Posted by: Stratford Team
- Category: Economy
Dynamics of exchange rates with a strong dollar.
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A strong dollar is great for businesses that import products or parts and a strong dollar is good for the international traveler. However, the negative impact on U.S. companies that do business internationally or have international customers, cannot be discounted. And in the case of a pending 2022 global recession, it’s going to be like a 1-2 punch for U.S. based firms operating on foreign soil.
Many U.S. businesses have international customers
The U.S. business that sells its products to an international consumer is finding it difficult to get the sale because a strong U.S. dollar stands to make things unaffordable abroad. The international consumer is paid in their home county’s local currency and the exchange rate to convert to U.S. dollars is getting too expensive. It is a challenge for the U.S. business to remain competitive against local alternatives when the…
