Business communications Essay Example | Topics and Well Written Essays - 250 words

Business communications - Essay Example The balance of trade becomes affected in such cases, thereby adversely affected the economy as whole. The Canadian dollar is positively correlated to the strength of the world commodity prices. This situation will boost imports as most traders will find it highly profitable to export to Canada at a comparatively lower exchange rate compared to the U.S. dollar. However, the exports will be affected negatively since it will be comparatively expensive to export Canadian products compared to the U.S. products. In conclusion, the fact that the recent report on the Purchasing Power Parity estimates a bundle of goods that cost a consumer $1 CAD in Canada would cost in the range of 80-85 US cents in the United States is a strong indication that some economic improvement should be done. As the Canadian dollar trends along these ranges, the Canadian consumers are, and will be paying a significant value on their goods compared to their counterparts in the United