Canada is the largest trading partner for the United Sta
Question and Solution
Canada is the largest trading partner for the United States. In 2009, U.S. exports to Canada were more than $171 billion
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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?
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