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    PurestofEssence's Avatar
    PurestofEssence Posts: 2, Reputation: 1
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    #1

    Mar 4, 2015, 09:08 AM
    Overvalued currency exchanged for undervalued currency.
    If i were to have say, $500,000, and I moved to Canada, exchanged this money for Canadian dollars then, invested that money into a company, prospered for a few years then exported the manufactured goods into America (With a higher exchange value) would I be profitable?

    I am looking to see if I am under the correct line of reasoning here. I don't plan on doing this, I'm writing a story and would like the character's motive to be feasible.


    Thanks friends
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #2

    Mar 4, 2015, 09:25 PM
    If I were to have say, $500,000, and I moved to Canada, exchanged this money for Canadian dollars then, invested that money into a company, prospered for a few years then exported the manufactured goods into America (With a higher exchange value) would I be profitable?


    No where in your story, is the exchange rate an issue about wealth.

    You move from somewhere, to Canada, and exchange your current money to Canadian dollars,
    of course there is a fee to move the money, but that is not really a issue.

    You start or buy a business ( not merely invest, if you are the exporter) you then export goods to America, ** although many places better export nations, China, Philippines, Mexico, than Canada would be. After you pay export duties, your sell makes a profit,
    The entire profit factor here is the business and the buying and selling at a profit from the exporting of goods.

    There is no issues or relationship to the value of the money here.
    PurestofEssence's Avatar
    PurestofEssence Posts: 2, Reputation: 1
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    #3

    Mar 4, 2015, 11:06 PM
    Would you know of a reason that it is more beneficial to move to Canada with this set amount of money than to stay in America with it? Say the money was stolen, does that make a difference. What about on a large scale as well. My understanding is that since the value is worth less, it would be easier for the United States to buy (what to them is an imported good) from a nation that uses a currency that has a lower value than their own. So, yes China, Philippines and Mexico would be a better buy but, since Canada is a lesser value (not too much yes) A person sending goods to a country that has a higher value would be ensured that they could sell their goods to that country, and just on this assurance be able to make a more secure profit.

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