Because Americans can get more for their money in the US. They can either buy 1 US Coca-Cola or 1/2 a Canadian Coca-Cola. So would you rather purchase 1 item in the US OR just half of the same item in Canada using the same amount of money?
if canada exports more to the us, and imports less from the us. why will it increase the demand for the canadian dollars and increase the supply for the us dollar?
To buy Canadian products you need Canadian dollars. The demand for Canadian dollars will rise and the US dollar will increase in supply on the foreign exchange market - US Americans supply their dollars in exchange for Canadian dollars.
Why would Canadians sell fewer exports to the US when 1us cocacola equal 0.5 Canada Coca-Cola
Because Americans can get more for their money in the US. They can either buy 1 US Coca-Cola or 1/2 a Canadian Coca-Cola. So would you rather purchase 1 item in the US OR just half of the same item in Canada using the same amount of money?
@@EnhanceTuition Thank you.
if canada exports more to the us, and imports less from the us. why will it increase the demand for the canadian dollars and increase the supply for the us dollar?
To buy Canadian products you need Canadian dollars. The demand for Canadian dollars will rise and the US dollar will increase in supply on the foreign exchange market - US Americans supply their dollars in exchange for Canadian dollars.
@@EnhanceTuition thanks for the great explanation, have a great day!