Reply #6: Well that helps, but not necessary

[dmallind]

If foreign companies can produce products here for the US - by far the world's largest market - they can take advantage of the weak dollar to build those products (or at least the initial facility and capital equipment) more cheaply. So instead of spending 100 million euros to outfit a new production fascility say they would only have to spend 100 million dollars instead. Now of course they get paid in weak dollars for those goods too when sold in the US, but they use the majority of those dollars to pay for US plant, equipment, workers, suppliues etc there is no relative loss to them until they repatriate the net profits. Not even then if they have plans to expand in the US.

This is the good side of the weak dollar no doubt about it. Works for tourism too not just I sector spending. All of a sudden the choice between travelling to the Alps and travelling to the Rockies for a European who wants to ski on vacataion is starting to get biased in the favor of spending money here.