Dollar/Euro exchange rate change affecting prices...

[Rick Oakes]

...of German tubas.

Considering that the U.S. dollar/Euro value is currently about 85 % of the peak U.S. dollar/Euro rate of 1.5990 in July of 2008 (based on the 5 year average), should it be expected that prices in the U.S. for German tubas will decline?
If not, why not?

---R.O.

[bort]

I say no, because the global economy has also tanked in that same time period. That means they sell fewer tubas now too.

[Rick Oakes]

So, now we are down to about $ 1.35 or $ 1.36 U.S. dollar/Euro. Any other thoughts?
BTW, I love Germany and have three German tubas. We used to hear when foreign currencies were trading at a low compared to the American Dollar, that American goods (i.e.--machine tools, heavy equipment) could easily be sold abroad. Do you agree with "sauce for the goose, like there is for the gander"?

Joe, I'm hoping to hear from you (if no one else).

--R.O.

[Rick Oakes]

"low" in my previous post should have been "high".

--R.O.

[sailn2ba]

Exchange rate price adjustments depend on who owns the horn or its components when the rate changes. Some retailers probably don't change their US$ catalogue listings, but others bill through from the manufacturer plus S&H. Inventory makes a difference, too.

In general, exchange rates have a substantial effect on prices of international goods. They determined whch side of the pond products were manufactured on and which they were shipped to in the company I worked for.