Monday, September 27, 2010

Exports and World money values are affecting everything

Exports and World money values are affecting everything
 
  The exports of USA goods is becoming pricey as world manufacturing giants that have come on the scene. China is one of the biggest their Yuan is not being allow to rise. When Currency is not allow to rise to keep up with the world Moneys  of other countries, the trade field becomes unlevel. The world as a whole is tougher to live.
1. The seller and buyer start looking at the short term price and profit.
2. Buyer and sellers should be looking  for quality rather than quantity, how many they can buy for the same price.
3. If the product becomes cheaper in character. Everyone loses. The items can only carry the old reputation so long. Once a company loses their good report it is very hard the win back the trust it had in the market.
4. Low prices and poor products cause the companies the struggle and possibly close.
5. If the companies close or moved off out of the companies home countries. The experience and knowledge may be lost.
6. If countries like China keep carrying out their policy they will be selling to third world countries. This will result in Countries like China making everything and nobody in the world that is left with enough money purchase regardless the price. 

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The following from http://www.dailyfinance.com
"Some signs of conflict have already popped up. For example, the U.S. is pushing China to allow the yuan to rise, with Congress scheduled to consider a measure that could lead to retaliation this week. Earlier this month, the Japanese government sold yen to lower that currency's value, drawing some international criticism.

Brazil, which has intervened heavily throughout September to stem the growing value of its currency, warned on Sept. 20 that it's considering even stronger action. And Mexico also has been buying foreign currency as its peso has appreciated, although it cited a desire to boost its reserves -- not depreciate its currency -- as its motivation.

With many currencies heading downward, the price of gold hit a record of more than $1,300 an ounce Friday, a sign that investors are seeking a safe haven.

See full article from DailyFinance: http://srph.it/cYQN5X
http://www.dailyfinance.com/story/investing/global-currency-intervention-exports/19648034/  "
9-27-2010

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