Every multi-national company is subject to fluctuations in currency values in their markets. This is true for both exporters and importers, but a given change in currency affects each of the two groups in opposite directions.
Rule of Thumb
For readers who are interested in learning the intricacies of this complex subject, I recommend this Harvard Business Review article and this Journal of Accountancy article, but generally speaking:
- Depreciating USD is a tailwind to U.S. exporters; and
- Appreciating USD is a headwind to U.S. exporters.
The opposites of the above statements are generally true for U.S. importers.
Regardless of whether a company is a net exporter or a net importer, however, one thing is certain: global currencies fluctuate through time, and rarely do so in only one direction.
