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As the result of this, government cannot raise interest rates and may need to halt interest rates where they are. While lower interest rates allow borrowing, higher interest rates may actually serve those better who have already invested in bonds and securities. But if U.S. cannot move interest rates around for fear of further halting economic activity then dollar is in constant danger of doing further down.
So the main question that arises here is this: whether a weak dollar is really bad for the economic health of the country? As easy as it may be to say yes, the answer is actually quite tricky. In more ways than one, a weak currency may actually serve larger trade interests of a country. When dollar is weak, it means more units of it can be bought for some other currency. This also means that U.S. products become cheaper for foreign buyers. This automatically attracts people to U.S. exports and thus allows U.S. exports to compete freely with some of the best products in the world. This leads to an increased interest in U.S. exports and thus a better U.S. economy on the whole. The exact opposite happens...
dollar rises against other currencies. The answer to weak dollar question is this: when a currency loses some value against a major currency, initially at least there is no real cause for concern. However if the value continues to fall, it can spell disaster for the economic health of the country.
In foreign markets today, any product coming from EU countries are more expensive than U.S. products. People are naturally attracted to U.S. products and this had actually worked as a warning to UK and Euro where U.S. was urged to work on the value of dollar as to strengthen it against these powerful currencies. But as long as it is serving the trade goals of the U.S., we can expect a fall in dollar. The unfair advantage that a country gains due to weakening of its currency doesn't last forever. Once the health of economy improves, the international checks and balances system starts working to make sure that better economies have stronger currencies.
References
Sterling Surges against the Dollar Whilst the FTSE Remains Strong," the Birmingham Post (England) 1 Jan. 2007: 24
(Efimova, 2007, paraphrased) SUMMARY AND CONCLUSION North Korea underwent internal changes as well as changes due to external factors that placed North Korea in a defensive stance in its focus on strategically avoiding threats and in rebuilding its own self-reliance economically. For North Korea since the Berlin Wall fell the use of conventional weapons by North Korea in defending itself from external foes has not been a feasible proposition, therefore, it
However, expansion requires capital investment and there is question as to whether these trends have a strong enough bases to continue into the future. The focus of Russian spending trends is on construction, particularly improvements on the infrastructure. However, this good news comes with a work of caution. Russia still has many obstacles to overcome in terms of competitiveness. They are recent players on the global market and need
S., become attracted to the U.S. And flee the country. Cuba certainly needs to prevent a brain drain at all costs. It could do so by encouraging the U.S. To invest in its infrastructure and for U.S. doctors to train and learn at Cuban facilities, which, by all accounts, have some of the highest standards of excellence in the world (Schoultz, 2010, 8). By helping to build up the Cuban
ILEA's International Law Enforcement Academies The 1990's saw a tremendous change in the nature of international relations and international threats and crime in particular. The end of the Cold War and the fall of the Soviet Union opened a large portion of Central and Eastern Europe, formerly under the control of the U.S.S.R., to cooperation with nations of the West. This included the United States, which sought to improve international relations with
Since 1970, the economic growth in U.S. had increased in real terms at a rate of 3.16% per annum, up to 2001, when the American economy registered a slow down period and the economic growth amounted 1.7%. Since 2003, the growth rate averaged 4.62% per annum. Currently, the economic growth is heavily influenced by fiscal relaxation policy that led to increased investments and economic growth level. The average return
President Thomas Jefferson offered Napoleon the emperor of France $2 million dollars for the region around the mouth of the Mississippi River, which included the port of and city of New Orleans. Ohio Valley farmers relied heavily on admittance to New Orleans, and President Thomas Jefferson wanted to guard these farmers, because they sent their crops down the Mississippi River to New Orleans, from which ships took the products