If you were a part of today’s discussion in International Business (GEB3373), you’ll remember an important part of the class was the concept of purchasing power parity. As it applies to international business, this refers to the amount of a country’s currency required to buy a given quantity of goods in comparison with another country. This can vary over time even in countries with many similarities, such as the United States and Canada.
Here’s a link to a recent commentary from Clement Gignac, in the Globe and Mail of Toronto (http://www.theglobeandmail.com/report-on-business/economy/economy-lab/canadian-dollar-purchasing-power-parity-points-to-85-to-86-cents/article16642440/). The article delves into several topics that are beyond the scope of the Converged Communications program, but it does touch upon a few of the issues (exchange rates, interest rates, account deficits) that appear in the course. For those interested in hearing a Canadian perspective on these complicated economic topics, this link is worth checking out.