The article that I read was written by John Shmuel commenting on the continuing weakness of the U.S currency. For years, U.S dollar has been the highlight of the world's economy holding up its country's financial status to the peak. However, as the years have been racing forward, U.S economy has been experiencing a significant downfall in their currency which is also one of the main reasons of U.S facing the Great Recession. Just last month UBS Wealth Management Research put out a report forecasting the U.S. dollar’s continued weakness against currencies like the euro and the British pound. The main concern is that the euro could replace the dollar as an international currency. The new forecast anticipates that the U.S. and Canadian dollars will reach parity within the next three months, while the euro is likely to be worth US$1.41 during that time period. Such drastic downfall in the U.S currency could result in the country being wedged in the Great Recession for a longer period of time.
Connection:
The connection between this article and the information in the text is Cost of Goods Sold and Gross Profit. Even though the article didn't mention anything about merchandising business, it has a direct affect on Canadian businesses. In terms of purchasing goods, Canadian businesses will now be paying lower price on cost of goods sold, which will result in a higher Gross Profit for their business.
Reflection:
This article reinforces the idea that for an accountant, it's essential to stay up-to-date with the global economy because for a country such as Canada that has strong international ties with other countries- in particular the U.S- any changes and variations in another country's financial state directly affects our country's economy as well.
Personally, I am quite delighted by this article because as a consumer myself, I want to be able to shop at an economical price for the items I love, so now when i go down to the U.S ( which I do very frequently), I'll be able to buy MORE and pay LESS!
