Quote:
Originally Posted by keithr
Curious -- do the price of goods generally scale linearly with the conversion rate US/CAD? I've had people tell me that the price of certain goods in Canada is much higher than the US after factoring conversion...
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This is one of my pet peeves.
You don't convert or count exchange on price alone and try to compare. In Canada a Canadian dollar is worth one dollar, period. You can't say well that would be 80 cents in the US because you are not buying it there.
When comparing prices they are in effect exactly what they appear to be not reduced by exchange rates.
If an item costs $1 and the wage is $10 then any exchange would be applied to both. This means that after exchange the item may cost 80 cents but the wage goes to $8 so proportionally exactly the same.
Soooo.... when we pay $6 a gallon for gas it is
exactly the same as you paying $6 a gallon, you do not apply exchange or try to reduce it in anyway.
Not to mention that there are times like a good part of last year where the Canadian dollar is actually worth more than the US one.
Does this make any sense to anybody but me?