Shankavi's International business assignment International business | Page 7

Learning Strand:

The learning strand that it relates to is business, economy, and trade. It falls into the category of economy-fluctuating currency/exchange rates. It relates to this strand because the Canadian currency rate has dropped in value to 72 cents US and this makes the Canadian currency worth less. This affects the economy because it is more expensive to cross borders and it will be more expensive to purchase products especially the US products. The global markets are getting weaker and there isn’t as much success on the imports and it can bring a downfall to the country. The currency rate plays a significant role in economy because if the currency rate increases there are more imports and exports happening and the economy as a whole is more successful in trade and in global markets

Thoughts and Opinions:

My opinion on this issue is that it is worrisome that the Canadian dollar is worth less. That makes things more expensive for Canadians when they cross the border to US. The Canadians are losing more money to travel and this stops many people from taking any vacations or holiday trips. It is a little concerning that this could lead to Canada facing recession and cause Canada’s economy to have a severe downfall. Overall, this will affect the citizens within Canada as well if the economy is not doing well because businesses may shut down and can go bankrupt if it reaches recession and many people will lose their job.

The 5 W's Breakdown:

Who: The Canadians

What: The Canadian dollar has dropped in value to 72 cents US.

When: It happened in the month of December.

Where: It is happening in Canada.

Why: The rate of Canadian dollar has dropped due to weakness in global markets of exports and the Canadian economy not doing well.

How: It dropped because of the American currency and economy doing well and the Canadian economy becoming weaker and has brought a downfall to the value of the Canadian dollar.