Question

Who gains and who loses from appreciations in the Canadian dollar?

Answer 1

Appreciation in the Canadian dollar means when Canadian dollar can buy more of other currencies with the same one unit of Canadian dollar.

In this case, the Canadian importing companies will gains imports will become cheaper due to higher value of Canadian dollar.

On the other side, exporting companies from Canada will loss because Canadian exports will become expensive in the global market resulting in decline in demand for Canadian exports.

Appreciation of Canadian dollar value will help the domestic companies (they will gain) who borrow from the international market as they will pay less in terms of interest and principle due to higher value of their local Canadian dollar.

Canadian consumers will also gain as they could access to cheap imports and also Canadian visitors going to other countries will also gain due to low cost of travelling due to high valued Canadian dollar

Students from outside coming to Canada for study and also tourists coming to Canada for travel will lose due to high cost of study and high cost of tourism in their currencies due to appreciation of Canadian dollar.

the above is answer..