A Field Guide to the Falling Dollar

In The New York Times

What I think is intriguing about this article is that it talks about the BIG guys, Volkswagen and Cadillac (a division of General Motors), on what the falling dollar means to our economy yet quotes one of my favorite SBA experts, Harvey D. Bronstein, a senior international economist at the Small Business Administration! Here's the clip on what he and a professor said about the falling dollar:

... said Maurice Obstfeld, a professor of economics at the University of California at Berkeley. "It takes time to reallocate resources to export industries so they can produce more," he said. "It also takes time for foreign demand to adjust, and switch to new sources of supply."

Long-term contracts can contribute to these delays, said Harvey D. Bronstein, a senior international economist at the Small Business Administration. "You have to build relationships and a trust level with purchasers in other countries. This takes much longer than the daily or monthly fluctuations in currency values."

To read the entire article, visit:
A Field Guide to the Falling Dollar