Loonie Talks
For many Canadians the value of the Loonie is a sensitive subject; the ever rising and falling of the dollar effects the everyday lives of Canadians. The value of the Loonie is like any other currency and rises and falls with global trends, yet, the largest economic trend to influence the Loonie is that of the United States. With a lower Loonie value against the US dollar Canada's exports become more appealing to foreign investors, this theory has been influential and exercised in recent Canadian governmental history. A strong Loonie is also good for the Canadian government as it encourages foreign investment and is much more lucrative for importers. The everyday lives of average Canadians, not just those involved in world economic systems directly, are influenced, changed and shaped by the value of their dollar: the Loonie.The Canadian economic system is influenced drastically by the cycles of the American system; the US cycles help set the future path for the Loonie and its users. Canada and the United States are the only G7 nations in the Americas this fact isolates these two countries and ties them closely together economically. With the United States being such a super-power within glo
Items that were previously costly to importers no longer are and this cost reduction is reflective in the items' overall cost to consumers. With the Loonie at a higher rate exports from Canada have little advantage. A lower Canadian dollar vis-a-vis the US dollar makes products manufactured in Canada relatively cheaper for foreign buyers and makes Canada a major competitor in the global market. With the recently stronger Loonie companies like Petro-Canada and oil companies alike are able to import oil from their liaisons in the Middle East at a price more contusive to their wallets. Recently the Loonie has been gaining strength in the exchange market. With a strong Loonie Canadians are able to acquire items and travel abroad at a much more feasible cost to them. With a stronger dollar it is more feasible for Canadian importers to purchase goods from abroad. The Loonie hit a high of 85¢US two weeks ago, if the Loonie continues to climb many exporters could be facing layoffs and or closures. With a strong Loonie, like we have seen recently, importers are pleased while the exporters are affected negatively. The Canadian people risk losing many jobs and then in turn their normal quality of life with such a strong dollar. General Motors is a giant US automobile manufacturer with many of its largest plants in Canada. US dollar for a cost advantage based operating system; as long as the Canadian dollar stays low and global markets accept moderately priced items Canadian exports will be profitable. The Canadian dollar value not only determines the amount and cost of imports and exports, but also determines the everyday lives of the Canadian people. bal markets Canada is forced to take a back seat and follow the cycles of its neighbors to the south. With a strong Loonie the GM Oshawa plant has little, if any, cost advantage over any of the American GM plants.
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Acceptance Essays
