Recalculate Your Financials to See Where the New Global Realities Lie

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Technically speaking, should the U.S. dollar be strong or weak relative to other currencies? It depends whose point of view you take. The fact that whatever position someone takes has pros and cons reveals the complexity of their positions.

Fast forward, not know which way the dollar will move, it will probably be prudent for U.S. companies to find U.S. sources for their supply chains, if feasible, or at least lessen dependence on foreign goods and services. 

Companies that use imported parts but also export will likely need to recalculate their financials to see where the new realities lie. Also, those relying on a strong U.S. dollar should re-examine their temporary advantage at the moment and consider whether it will still work with a weaker dollar.

A Strong Dollar Is Good For the American Economy

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The United States has benefited from a profound shift in global capital flow, which has boosted the dollar.  But why is a strong dollar in America's best interests?

Not only does a strong dollar mean that there is a healthy demand for American-made goods and services, but, perhaps more important, it’s also a show of confidence in the U.S. government and financial institutions.

Learn how the shift in global capital flow has boosted the dollar, which should continue as the global economy adjusts to higher inflation and higher interest rates. 

Slowing Global Demand and a Strong Dollar Pushed U.S.A. Goods Exports to a Seven-Month Low

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Slowing global demand and a strong dollar pushed goods exports to a seven-month low, suggesting that trade could be a drag on economic growth this quarter (fourth quarter 2022) if the trend persists.

The recent report from the Commerce Department, which followed on the heels of recent upbeat news on the economy ranging from consumer spending, the labor market to the services industry, did not change perceptions that the economy had got off to a solid start in the fourth quarter.

Read more about how the U.S. trade deficit has widened.

Complications: Trade Deficits, Currency Manipulation and the Strong Dollar

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Trade deficits, currency manipulation and the strong dollar are complicated economic forces that directly affect the future of American manufacturing. 

Here's a look at how they affect manufacturing and why we must do something around these issues, regardless of the politics. 

Are US Small Businesses Worried About Trade Policies?

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What affects small business owners when they attempt to go global?  A report by the nonprofit Global Innovation Forum, "The New Faces of American Trade," states that US trade policies and the strong dollar, which makes US products more expensive in overseas markets, impacts their ability to export.

The report examines how companies use Internet resources to expand their export presence.

Like bigger companies, small businesses favor open trade and consistent rules. And trade negotiations are key to keeping markets overseas open to American products.

Learn more ...

Global Strength Will Boost U.S. Manufacturing

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For many years U.S. manufacturers have been hit by weakness in export markets and the strong dollar. As a result, the trade deficit in goods has surged. But this trend is about to turn, and the export sector will be a source of strength for the manufacturing economy in the years ahead. This is good news not only for the U.S. economy, but also could help stem the rising tide of protectionism.

Go guys. Go gals. Go global!