Comments on: Greenback Blues? Not In Techville

By: Jack Coupal

Jack Coupal — Thu, 25 Oct 2007 15:56:40 +0000

American companies - especially the smaller ones - which have been doing a lot of outsourcing overseas for many years, are now learning one of the financial downsides of locating facilites there.

The bigger companies with experience always knew it was a distinct possibility and would happen eventually.

By: A.T.

A.T. — Thu, 25 Oct 2007 15:21:39 +0000

I wonder how much black-blood-of-economy (namely oil) bought from abroad for dollars as %% rate and how soon this factor will be felt in consumer confidence... Or, am I asking stupid question for car-driven nation?

By: Alex Goldman

Alex Goldman — Wed, 24 Oct 2007 19:40:25 +0000

This is interesting. I had read that the weak dollar would help local manufacturers compete, and I understand that the weak dollar helps companies earning foreign currency.

The fear, however, is that although gains in foreign markets are unexpectedly profitable, the ongoing cost of foreign operations will be unexpectedly expensive. Only tech companies that can afford to keep investing will reap the rewards of the low dollar. Others, especially those that have located most of their cost centers abroad, will be harmed.

By: Dhiren

Dhiren — Wed, 24 Oct 2007 14:25:41 +0000

Well, it is true for any consumer driven global business. It will increase the revenue but also the spending as the cost for supporting call centers, outsourced development facilities and such increases.