Exchange Rates

Do Exchange Rates have an effect on the spending habits of Consumers? While in the Marines for 20 years; I got to travel all over the world and used various forms of Currency, some that had a good rate of return and some that did not. So for me I was able to see first hand on how the Exchange Rate effect the consumer during the buying process.

Lets take a look at Toyota right now; here is a company that for a very long time has been making a lot of money from the Yen Exchange Rates to the U.S. Dollar; right now they are not doing to good, which is mainly attributed to the week dollar and the U.S. Consumer not be able to buy their product.

When the Dollar Exchange Rate is low the U.S. Consumer can not buy that much so foreign consumer goods do not do that well in the U.S.A.. But U.S. consumer goods sell at a high rate in those foreign countries, due to their currency buy more then before. Also countries with a higher exchange rate will invest more into the U.S.; thus allowing for growth and job creation..

So does Exchange Rates have a effect on Consumer spending? I would have to say yes and if you look hard enough you would probably say yes also; so look around and see what is being bought and sold and see where is is made, then look to see what the exchange rate for that country is.