Exports and Forex in North America: Cheaper Loonie Equal More Exports to US?

by royalarse13

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Despite strong loonie growth in exports to the USA exceeded that of total exports.

Admittedly this is an incomplete analysis, but here is a look at how exchange rates impacted exports leaving Canada: a) to the USA, b) total exports. In theory, a weak loonie would incentivize US businesses to buy good and services from Canada. However, when the loonie is roaring 2001-2007 growth in exports to the US rises faster than total exports!

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