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    pben2's Avatar
    pben2 Posts: 2, Reputation: 1
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    #1

    Aug 12, 2012, 01:07 PM
    Feeback from buying foreign products and services
    If Americans buy foreign products or services using US dollars, doesn't that require the recipients to ultimately buy American products with the US dollar currency? So doesn't that ultimately 'feed' back to the American economy to produce jobs? Is it a 1:1 ratio, or is something lost along the way?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Aug 12, 2012, 01:13 PM
    No currency or money is traded, You can go to a local bank that does international trading here in the US and get Russian, Chinese, Japan and more money.

    Next often funds are just paid by transfer of money either electric transfer or other payment, the funds are transferred though banks, who will do a exchange rate and send the money in any currency you want.

    Last week I sent money to China, money to a African nation and money to Japan, when they received their funds it was in their own currency.

    I am going to China in about a week and wanted to get money, so I go to a bank in Down Town Atlanta, and use my ATM card and they give me Chinese Yuan.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #3

    Aug 12, 2012, 09:36 PM
    Your premice is correct in the broadest possible sense, in that ultimately there will be an exchange of currency for goods or credit, but a bank acts as an intermediatary and holds a stock of foreign currencies
    pben2's Avatar
    pben2 Posts: 2, Reputation: 1
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    #4

    Aug 15, 2012, 09:29 AM
    But what effect does it have on American jobs? Does it ultimately feed back to produce American jobs because the American currency has to be spent somehow? Is it a 1:1 ratio, or is something lost along the way?

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