How change in exchange rates could impact u.s. consumers

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Canada is the largest trading partner for the United States. In 2009, U.S. exports to Canada were more than $171 billion and imports from Canada totaled more than $224 billion. On January 1, 2009, the exchange rate between the Canadian dollar and the U.S. dollar was 1.224 Canadian dollars = 1 U.S. dollar. On January 1, 2010, the exchange rate was 1.05 Canadian dollars = 1 U.S. dollar. Explain how this change in exchange rates could impact U.S. consumers and firms?

Reference no: EM131314552

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