11.23.2007

Mall of America: wunderbar

For foreign shoppers, a weak dollar is wunderbar, utmärkt, trÈs bien

Excerpt:

With euros, kroner and Canadian loonies gaining new muscle, Minnesota retailers are reaping rewards from far-flung consumers.

Andrea Guðjónsdóttir arrived in Minnesota from Iceland last week with nothing but the clothes on her back. Oh, and two empty suitcases, which she promptly filled to near-bursting with clothes, toys and other gifts during a five-day shopping spree in the Twin Cities.

"Everything's so cheap," said Guðjónsdóttir, 35, who lives in Akranes, a seaport city on Iceland's west coast. "You can pay $30 for Levi's here; at home, it'd be $200."

Comment: The Mall of America: where I don't shop. Article illustrates exchange rate benefits to Europeans.

2 comments:

  1. I had wondered something similar to this. As the USD decreases in value, or at least while the euro increases against the USD, would that not increase overseas spending on US products which would in turn increase US production? It seems like roles have reversed, or will reverse. Is this an accurate assessment?

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  2. Good point Daniel.

    When foreigners buy american produced goods, it is good for american jobs and the manufacturing sector.

    When foreigners buy american sold goods, that are produced overseas (Levi jeans), it is good for american retailing only and net neutral for manufacturing.

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