Canadian Dollar Downfall

667 Words3 Pages
The article discusses the drastic fall of the Canadian dollar and it impact to productivity. With it steady but fast drop, it has come as a shock to many businesses. The worth of the Canadian dollar is now below 75cent (U.S) and is expected to even fall further, which means the Canadian productivity performance will be affected. Although this drop is beneficial for exporters and increases the economy; on the other hand, it brings great cost for importers and decreases in productivity. Due to the low currency, Canadian firms are investing less than their opposition when it comes to productivity-boosting; this has negative impact on productivity which the author described as “the lazy manufacturer hypothesis”. Since some companies are not taking actions to increase their profits, Canadian competition in production has become less.…show more content…
This particular article caught my interest because it went further to outline the threats that this drop causes to productivity and the ways Canadians standard of living are also threatened. As I skimmed through the article for the first time, I was drown when the author gave example of the past when Canada experienced similar currency drop and the outcomes that came along with it. It showed the positive and negative consequences it had on the country before and this has provided me with some insight knowledge of changes to expect in our economy if the local currency continues to drop. As it is now, Canadians are already going through these changes such as increased in merchandise prices and especially in our basic necessities, for example, food cost. It was keen to learn that the choices companies make during this recession contribute to the consequences that will follow the general

More about Canadian Dollar Downfall

Open Document