As the Canadian dollar bounces around near parity with the U.S. dollar, Canadian companies are now threatened by the prospect of cheap American products and services gouging their competitiveness.
A leading Canadian think tank is warning Canadian firms they are putting their long-term futures in peril if they ignore the dollar’s long-term rise.
The Conference Board of Canada says Canadian firms risk losing their international competitiveness if they do nothing to counter its rise.
The U.S. dollar just weakened from 1.25 Canadian to ~1.0 in about a year. Canadian productivity gains will have a hard time keeping up.
This is an example of how it’s nearly impossible to know what is the best value for the dollar, for America. If Canadian business wants a stronger dollar right now, then is a strong dollar good for the U.S.?
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