Import and Export Prcies: First Quarter 2010. May 2010 Volume, 1, Number 1. Focus on Prices and Spending

摘要

Price is a key factor affecting the competitiveness of U.S. exports. When the prices of U.S. exports fall relative to the prices of similar products pro-duced in other countries, the demand for U.S. ex-ports grows. The Bureau of Labor Statistics (BLS) releases price indexes each month that show the average price movement for exports. These indexes measure items in U.S. dollar terms which, in effect, show the average price change that U.S. exporters receive for their products. Another factor that should be analyzed is the price competi-tiveness of U.S. exports. From the point of view of a buyer in a foreign country, how the price of U.S. exports changes in foreign currency terms is more relevant than how the price changes in U.S. dollar terms. The price trend for U.S. exports in any given foreign currency can differ from the price trend in U.S. dollar terms, depending on how the value of the U.S. dollar varies relative to that currency. For example, a buyer in Canada may purchase a U.S. item that increases 5 percent in U.S. dollar terms. However, if the Canadian dollar rises by 10 percent compared with the U.S. dollar over the same period, in Canadian dollar terms, the item is actually 5 percent cheaper.