aeilkema opened this issue on Feb 10, 2005 ยท 69 posts
karlm posted Fri, 11 February 2005 at 11:02 PM
Yes, I would say that sticking to 1:1 is taking advantage of the situation since the actual rate is so far from 1:1. If a company is offering a product to consumers in multiple currencies, it is unreasonable to ask that they continually update the prices according to the exchange rate. What is reasonable is that it would stay fixed as long as it remains within a certain bracket. For example, stick to 1:1 if the rate stayed within a 1:0.9 and 1:1.1 bracket. But once it sways far out of the bracket (and for an extended period) it's time to update the price to maintain market fairness.
As MartinPh pointed out, their 1:1 policy just seems too opportunistic.
End of story, as in the US$ has dropped compared to the Euro due to changes in American policies, not European. Ask any economist. This can be easily seen by looking at the exchange rate between US$ and other first world currencies (the US$ has gone down significantly in almost all cases). This is hardly debatable. What is debatable is whether this is a good policy for Americans and American business. I don't really have any interest in debating this. (btw, I'm neither American nor European in citizenship)