The Price Of Everything Raises Essay

1207 Words Oct 21st, 2016 5 Pages
Topic Paper

“The price of everything raises and falls from time to time and place to place; and with every such change the purchasing power of money changes so far as that thing goes” (Alfred Marshall). As a consumer, buying a product or service is a choice we have, different elements affect that choice. We might not realize all those outside factors at the time of purchase, but as Alfred Marshall said, prices are always changing, affecting our spending. One of those outside factors is the foreign exchange market. “The foreign exchange market spans the globe, with prices moving and currencies trading somewhere—every hour of every business day” (Eiteman, Stonehill, & Moffett, 2016, p. 119). What does this mean to consumers? It depends on whether the U.S. dollar appreciates or depreciates. Having a strong U.S. dollar is better for consumers than a weak U.S. dollar because it increases the value of the U.S. dollar, increases traveling, and gives consumers more purchasing options. As the result of the U.S. dollar appreciating, consumer’s U.S. dollar has more worth compared to other currencies. The foreign exchange rate “is the price of one currency expressed in terms of another currency” (Eiteman, Stonehill, & Moffett, 2016, p. 129). Let us take for example the U.S. dollar and the Mexican peso and define foreign exchange quotes. I recently traveled to Mexico City (September 21) and Puebla (September 23), in both location making foreign exchange transactions. As stated…
Open Document