Information about the Canadian dollar can help you increase your international businessCanada is the U.S.’s biggest single trading partner, so it is important for most businesses to consider Canadian dollar exchange rates when planning. Especially with the Canadian dollar reaching an all-time high value with respect to the U.S. dollar in November, 2007, it has been crucial for businesses with any international component to keep a close eye on Canadian money. On the international scene, Canadian currency continues to gain in importance -- once linked in value to U.S. currency, the Canadian dollar has risen in value compared to world currencies since 2002.
The change in the value of the Canadian dollar needs to be watched by U.S. businesses. Canadian dollar exchange rates remained low throughout the 1990s and in the early years of the 21st century. This meant that Canadians had little incentive to purchase higher-priced goods for import. With the higher Canadian dollar value over the past year, however, it had become cheaper for Canadian customers to purchase U.S. goods. Especially in the case of Internet sales, the Canadian dollar exchange makes it economical for customers in Canada to make their purchases from American companies and then import those goods into Canada.
Keep in mind the following when dealing with the Canadian dollar:
1. Remember the importance of the conversion rate between the American and Canadian dollars for trade.
2. Make sure that you have the correct Canadian dollar value when pricing goods.
3. Include both American and Canadian dollar exchange rates for businesses likely to reach customers in both countries.
Research the historical values of the Canadian dollar
Keep in mind other aspects of the strength of the Canadian dollarThe value of the Canadian dollar is determined principally by world market rates, but its exact worth varies most due to commodities exports. Keep this in mind when dealing with US to Canadian dollar conversion as well as conversion between other foreign monies and the Canada dollar.
Gather as much information about the Canadian dollar as possible both when setting pricesBusiness trends of the past will help you recognize future trends quickly.
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