ECONOMICS REPORT - The Falling Value of the Dollar

ECONOMICS¹ REPORT - The Falling Value of the Dollar
By Mario Ritter

Broadcast: Friday, January 02, 2004

This is Steve Ember with the VOA Special English Economics Report.

The falling value of the dollar has become a major story in international finance². The value of a country's money is often thought to show the strength of its economy. But experts say this is not always the case. Changes in the value of currency help some parts of the economy and hurt others.

When people go to foreign countries, they have direct experience with the exchange rate of money. International travelers must use their own money to buy the currency of the country they are visiting. For example, Americans on holiday in a foreign country can buy more currency when the dollar has a high exchange value.

So a high exchange value is good for vacationers. It is not so good for exporting. A strong dollar means that American exports are more costly³. Other countries are less likely to import products from the United States because they are too costly. American agricultural goods, computers and airplanes all are more costly on the world market when the dollar is strong.

However, sellers⁴ of foreign goods within the United States are helped by a strong dollar. A strong dollar means that American companies can buy more with the same amount of money. They can sell goods at a low price in the United States and still make a profit.

This means that Americans can buy more. Low prices increase demand for foreign goods in the United States. American companies and individuals then continue to buy less costly foreign goods. This helps to increase the American trade deficit⁵.

A weak dollar helps American companies that do business overseas. For example, the American computer industry gains because its products are less costly to foreign buyers. Financial magazines report that technology companies like Intel and Microsoft have increased profits because of the weak dollar. Increased trade helps reduce the American trade deficit.

The United States Commerce⁶ Department keeps information on America's imports and exports. Information on the third quarter of two-thousand-three shows that America's trade deficit did fall. American exporters should gain the most from the falling dollar. But, the affect of the weakening⁷ dollar on the United States trade deficit remains⁸ to be seen.

This VOA Special English Economics Report was written by Mario Ritter. This is Steve Ember.

1 economics   

n.经济学，经济情况

参考例句：

• He is studying economics,which subject is very important.他正在学习经济学，该学科是很重要的。
• One can't separate politics from economics.不能把政治与经济割裂开来。

2 finance   

n.财务管理，财政，金融，财源，资金

参考例句：

• She is an expert in finance.她是一名财政专家。
• A finance house made a bid to buy up the entire company.一家信贷公司出价买下了整个公司。

3 costly   

adj.昂贵的，价值高的，豪华的

参考例句：

• It must be very costly to keep up a house like this.维修这么一幢房子一定很昂贵。
• This dictionary is very useful,only it is a bit costly.这本词典很有用，左不过贵了些。

4 sellers   

n.卖者( seller的名词复数 )；卖方；销售者；销售商

参考例句：

• buyers and sellers transacting business 进行交易的买方和卖方
• All manner of hawkers and street sellers were plying their trade. 形形色色的沿街小贩都在做着自己的买卖。 来自《简明英汉词典》

5 deficit   

n.亏空，亏损；赤字，逆差

参考例句：

• The directors have reported a deficit of 2.5 million dollars.董事们报告赤字为250万美元。
• We have a great deficit this year.我们今年有很大亏损。

6 commerce   

n.商业，贸易；社交

参考例句：

• Commerce binds the two countries together.贸易把这两国结合在一起。
• They drew up plans aimed at expanding commerce.他们拟定了发展商业的计划。

7 weakening   

v.（使）削弱， （使）变弱( weaken的现在分词 )；消震

参考例句：

• The currency of that country is weakening on foreign exchanges. 那个国家的货币在外汇市场上疲软。 来自《现代汉英综合大词典》
• Bad and irregular eating was weakening every function of his body. 吃得又差又没有规律，使他身体的每一个官能都在衰退。 来自英汉文学 - 嘉莉妹妹

8 remains   

n.剩余物，残留物；遗体，遗迹

参考例句：

• He ate the remains of food hungrily.他狼吞虎咽地吃剩余的食物。
• The remains of the meal were fed to the dog.残羹剩饭喂狗了。