How do weak currencies help exports, /biz/?

>>1062234
It makes that countries exports relatively cheaper.

>>1062238
But in the end, how is a T-shirt of same quality produced in a weak currency country cheaper?

>>1062251
>Cheap labor

Imagine two companies. A company pays its workers £2 and competes with B company that pays its workers $2. Both buy materials on the international market and both sell end products there. Whichever currency is weaker effectively pays less in wages.

The skill of the workforce isn't directly linked - its more a product of the education system and the training schemes within the company

>>1062262
But that in not inherent to a weak currency, is it?

>>1062251
say you're producing suits in Bulgaria. You need X bulgarian leva to buy linen, Y leva for equipment amortization and upgrades, and Z leva for personnel. Let's say a total of 500 BGN for a suit, which you would export abroad for 300 USD.

Then, the dollar gets more expensive, or the lev becomes cheaper, whatever, and suddenly 500 BGN is equal not to 300 USD, but to 200 USD.

You are now equally happy to export suits for 200 USD, compared to selling them for 300 before.

Of course, everything is a bit more complicated, since you might import materials from abroad, and the supply chains are hellishly complicated and intertwined, but that's the gist.

>>1062251
Ok, it costs 10 yuan to make the shirt.

If 10 yuan =$1

then the seller can sell it for $1.10 and make a profit

If 10 yuan = $0.50
Then the seller can sell for $0.55 and make a profit

Thusly as the yuan is weaker relative to another currency it makes that countries product cheaper to buy if you're paying in dollars.

Buy ethereum.

>>1062279
>buy etherium
That just negated pretty much everything that you posted.

>>1062308
Correction is over, its starting to go back up it will be at 0.007 btc by tomorrow

>>1062367
>not even one fuck was given

Wait...

Nope nevermind I'm all out of fucks to give at the moment. Shill your pyramid scheme in your multiple pyramid scheme threads.

>>1062274
I think I understand now, thanks m8

If so, what's the benefit of having a strong currency?

America also exports a lot

>>1062375
>a currency and a distributed application platform is a pyramid scheme

Stay poor.

>>1062524
Thanks. What I posted merits repeating.

Currencies are paired relative to each other. If the Yuan takes a shit and loses half its value relative to the dollar, the one redeeming thing about it is that the goods they produce can now be sold for half as much as they used to

It helps the same way people avoid international vacations when their home currency is weak and vice versa.

Weak US dollar --> 1 USD = 1 CAD.
Americans will not spend money in Canada, but Canadians will buy as much as they can from the US. Weak US dollar = strong US exports to other countries.

If 1 USD = 2 CAD, then Americans would travel to Canada and buy as much as they could. Canadians would not go to the US because it would cost them double when compared to the first scenario.

Strong US dollar, nobody wants to buy US goods.

But why those Asian currencies are like 10000 = 1 USD?

>>1062496
A strong currency lets you import stuff. Russian Vodka, Belgian Beer, Japanese Sake, Mexican Tequila.

Basically anything that you fancy now has a low price tag. And lets face it with the state of American beer a strong dollar is the key to happiness.

>>1062556
Does this result in an equalization of prices but not currencies right?

>>1062564
Some are pegged so that their exports stay cheap.

The terms "strong" and "weak" in this context is relative.

A "weak" currency doesn't just mean the number is bigger on one side than the other.

Some people in this thread seem to be under that impression

Buy ether