Hard to be sympathetic with this claim, which has two solutions.
They can raise the price of their products in the local currency.
Or, they can hedge the value of the dollar with currency futures.
Many multi-national corporations take exactly that approach.
Why can't Coke and Pepsi?
In fact, Coke and Pepsi probably manufacture 100% of their products in the local country, which already gives them a significant price advantage.
only if you think corporate profit depend solely on exports. What about profit from within the country? Its down because ppl are poor and couldn’t afford to buy stuff
What is your view on the strong dollar. Overall I think it’ a plus but it does have some consequences.
The US Dollar is King.
Everything else is Monopoly money.
The dollar is not “surging” nor is the stock market. The economy is in shambles thanks to hussein’s confiscatory tax policies and regulations that kill corporate profits and jobs. The numbers orchestrated by the regime are lies. Even Texas is feeling the pain of the shackles the Kenyan has put on the once-free Republic.
We’ve lost control of our currency. All other countries have to do to make their products cheaper in the U.S. is to lower their central bank rates against our treasury rates. And that’s what they’ve been doing lately to an unprecedented extent.
Why hold onto euros and buy Eurobonds when you can convert your euros to dollars, use them to buy U.S. Treasuries, and earn twice as much interest?
No wonder the number of German Mercedes Benzes sold in the U.S. has risen nine percent over the past year, or that the stock of European-based Fiat-Chrysler has risen more than 7% over the past two months.
But what can Janet Yellen do about this? If the Fed raises interest rates later this year as promised, the dollar will rise even higher against other currencies. But if the Fed does nothing, it will expose the Fed’s powerlessness to deal effectively with our own and the world’s economies.