Strong Currency = Manufacturing Job Cuts: It Is That Direct In AustraliaApril 8, 2013 11:15 am
We spotted this stat today, that GM Holden, the Australian unit of General Motors, is cutting 500 jobs, or 18 percent of its workforce. But what caught our attention is the reason cited by the company – The Australian dollar has traded above parity with the U.S. dollar for more than two years and has appreciated markedly against the Japanese Yen, making it more difficult for Australian manufacturers to compete with Japanese carmakers.(Source)
How do we digest this stat? as countries compete to depreciate their currencies to keep their manufacturing and exports competitive, the international trade community has a very real problem in their hands.