Assignment Example | Topics and Well Written Essays - 250 words - 5

Assignment Example The weak dollar also shows that people do not have confidence in the United States government to be fiscally responsible. There are benefits to a weak dollar. One of the benefits is that it makes American exports more affordable for the rest of the world. A weak dollar can cause American companies that export lots of their goods to dramatically increase their profits. The problem with the weak dollar is that importing things from other countries is more expensive. This is very troubling for countries such as Canada and China that do a tremendous amount of trade with the United States. Both countries try to keep their currency exchanges with the United States in a position that favors their exports to America, but this is difficult to do and slightly illegal (but China still does it). The Turkish government on 1/1/2005 revalued the Turkish Lira. 1,000,000 of the old Lira would equal 1 of the New Turkish Lira. The transition went rather well, but did result in some strange prices for c onsumers. Some credit card banks did not get their computers reprogrammed promptly, resulting in abnormally high prices for common goods. These mistakes were sorted out between the consumers and the banks.