Lok Sang Ho

Global Economic Revival Plan Must Include Realignment of Exchange Rates

Presently the main problem with manufacturers anywhere is certainly the decline in orders. However, with a super strong currency, any meagre export that you may achieve will bring you a negative net income. Exports simply becomes not profitable because it costs you more to produce the good than the marginal revenue from selling an additional unit. A strong currency compounds the problem of a shortfall in orders. I am arguing in favor of exchange rates that allows exporters in every country to garner a profit.