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Windsor not much of a bargain, eh?

Windsor not much of a bargain, eh?. By Louis Aguilar / The Detroit News January 18, 2004. http://www.detnews.com/2005/business/0501/18/A01-62829.htm. Downtown Windsor.

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Windsor not much of a bargain, eh?

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  1. Windsor not much of a bargain, eh? By Louis Aguilar / The Detroit News January 18, 2004 http://www.detnews.com/2005/business/0501/18/A01-62829.htm

  2. Downtown Windsor • WINDSOR -- Chason Pierre puffed on a Cuban Cohiba Exquisto cigar at Cheetahs club in downtown Windsor. Amid the thumping techno music, the last thing on the Detroiter's mind was the falling value of the U.S. dollar. • The dollar is on a long slide and now trades for $1.20 Canadian, down from nearly $1.60 two years ago. "Even if the damn thing drops to $1.01," he said, "there's enough crazy people like me who are going to go for that edge." • But Metro Detroiters may not be as crazy as he thinks. • The weak U.S. dollar is taking a chunk out of Windsor's economy as fewer Americans shop, drink and eat in "the city of roses." • The declining U.S. dollar is more bad news for a Windsor tourist economy still suffering from the effects of the September 11 border crackdown.

  3. Dollar’s Tumble • Canadian manufacturers say the $'s tumble is squeezing profit margins, while residents who work in Detroit say the exchange rate is pinching their paychecks. • "It's tough, no question," said Dan Orman, co-owner of Freeds, the largest independent men's clothing store in Canada. • Freeds is among dozens of retailers including restaurants, clothiers and other small businesses who say the weakening U.S. $ has translated into a drop in business. Several businesses estimated the drop at about 10 percent • "When people can remember when one U.S. $ meant $1.60 in Canada, it's difficult for them to see the current rate," Orman said. "The loyal customer still understands the value, but we really have to step up the advertising and make sure customer service remains top-notch."

  4. Economics • Foreign Exchange • 1.60 L / $. What does it mean for U.S. buyers? • Each dollar buys 1.6 L. It’s cheap to shop in Windsor • 1.20 L/$. Each dollar buys 1.2 L. It’s expensive for U.S. people to shop in Windsor, BUT • 1L now buys $0.83. Before 1L bought $0.625. • SO, more Canadians shop here! It’s bad for Windsor Crossing but good for Oakland Mall!

  5. Why did this happen? What does it mean? • The U.S. imports far more goods than it exports. The gap means $ are flowing out of the country to pay for such foreign goods as oil and textiles, creating an oversupply that lowers the $’s value on the world market. • A weak U.S. $ means Americans find it more expensive to travel abroad. Goods produced overseas cost more here, while U.S. products are cheaper for foreigners.

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