Weakening U.S. currency could change how you do business.
Whether the U.S. dollar is weak in an absolute sense is up for interpretation. But there's no question that it's a lot less muscular than it was a few years ago. And it's likely to get weaker yet, as Asian countries that have been protecting the U.S. currency--to boost their own exports--will eventually have to back off. In this environment, imported goods become more expensive while American exports become cheaper abroad. Over time, U.S. interest rates also move higher.
What does that mean for your business? If your competition is primarily international, a weakening dollar is nirvana. Whether you actually sell your product in this country or abroad doesn't matter. Relative to those international competitors, you're in better shape. On the other hand, if you import goods and sell them domestically--retailing, for example--then you might find yourself on the pointy end of that particular stick.
Continue reading this article - and everything on Entrepreneur!
We make some of our best content available to Entrepreneur subscribers only. Become a subscriber for just $5 to get an ad-free experience, exclusive access to premium content like this, and unlock special discounts.
Entrepreneur Editors' Picks
Kale Was a Garnish Before This Creative Genius Made It Famous. Here's How She Did It — and What She's Planning Next.
Telling Your Brand Story Is Crucial. 4 Steps to Ensure That It Resonates.
This Baker Was Told Not to Speak Spanish With Colleagues, So She Started Her Own Cake Company That Values Employees Just as Much as Customers
Improving Yourself Takes 9.6 Minutes of Work Each Day
Meet the Women Behind Some of McDonald's Most Iconic (and Essential) Ingredients — and How They're Setting New Standards
Remote Work Shouldn't Be Up for Debate
Employees Are Over Foosball Tables and Free Snacks. Your Company Culture Needs This Instead.