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America's Currency Rates Affecting The US Economy

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The world’s largest economy, the United States, is a major player in the international economic system. If U.S. economy declines, it will affect international finance. Because most international transactions are made in US dollar and The United State is the largest trading country, they play a major role in world export and import (World Financial Watch, 2013). If US dollar’s currency rate increases, it will affect our country’s economy negatively because price of products and services will increase and customers’ buying ability will decrease. Regarding our company, we import our products from America. If U.S. economy declines, the price of imported products will increase. We will not be able to compete against our rival so we have already decided to pursue product differentiation strategy. Even if U.S. economy declines it will not affect the consumption …show more content…

To operate international business, top managers in a company have to learn global strategy and implement them. A new company can use strategy of the host company such as partnerships with other countries, acquiring companies in other countries and owning franchises and patents of other countries (World Financial Watch, 2013). Companies definitely encounter global competition and market changes. Who will survive in such a market? The companies, which select a global supply chain and vendors and monitor threats in the market place, will operate successfully and gain competitive advantage (Wisma, 2013). Starbucks has many competitors but they have created their own culture, value, and brand. Today Starbucks has 20,891 stores in 62 countries. Corporation revenue is $14.89 billion and they have 160,000 employees. The company is the largest coffeehouse company in the world (Starbucks, 2014). Starbuck is a global leading company. Therefore our company in Mongolia will lead by strategic management like Starbucks

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However it doesn’t have a large impact on the food industry as such as consumers need to purchase food in order to survive. Although they may decrease quantity of foods they choose to buy, they are still willing to purchase basic foods that will sustain their health. Consumers are more likely during an economic downfall to spend their money on foods they require rather than want. The company as a result obtains an advantage from its competitors as they produce long lasting food options, which allows consumer’s to save during tough times. This highlights an opportunity for the company as they produce healthier and simple food varieties which many customers desire.

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The business mainly focused on the changing the company customer relationships, although the business did have to deal with certain problems in process of internal human resources and business productions. Starbucks is one of the most successful coffee brewing business running in the United States. Today, the business center attention focuses on changing of positive business customer relationship. In this point of time the vision of business is based on the formation of a positive public image of the business and the consumer satisfaction is the main concerns of the business.

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Therefore, a weak dollar has the ability to change the entire flow of trade that occurs when the dollar is strong. When the dollar is weak, America as a whole tends to export more goods and services than it imports.

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For example, the sales of Apple products in US will decrease if there is a rise in the US. Because of this the purchasing power will also decrease. Hence the sales will be reduced. Hence, to reduce the rise effect, Apple has purchased itself foreign currency.

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