Ailing US Dollar Hurts Europe’s Small Business
The majority of euro-earners may be celebrating after the currency hit its all-time high against the US dollar last week, but it seems to be hurting Europe’s own small businesses.
Many tend to forget that these hard times for the ailing US economy has also been tough for small businesses throughout Europe that target Americans as their primary market. In fact, many business-owners have already seen a significant revenue shrink in US sales because the swooning dollar has been losing the forex battle. European products being exported to the US are sold in dollars while their costs (raw materials and labor) remain in expensive euros. This problem is even made more complicated by the worries that Americans might refuse to buy products from them.
The euro peaked at $1.52 this week, almost 23 percent higher since it first came out in 1999. Economists claim that all euro-dominated export businesses have every reason to be worried. However, it is the tourism-oriented manufacturers that are hurting the most.
on 2008-10-06 at 00:36:55
Currencies are hopelessly tied to each other in this global world. Face it guys, the fall of the dollar doesn't mean the rise of the Euro or any other currency for that matter. It just means capitalism suffers a dangerous "disease." I hope this all gets fixed, or our own businesses here in Europe will get damaged pretty bad.on 2008-09-19 at 01:41:48
I am very much concerned by the state of the economy we're in. I am in the export-import business and this year has been one of the lowest I've had in recent memory. I hope the dollar picks up soon or else we'll go bust!