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03-29-2011, 11:06 AM   #16
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If you live anywhere in the Vancouver lower mainland, you have at some point crossed the US boarder to shop for gas, food, electronics, cloths and so on. On some days there is a multiple hour wait crossing the boarder and it’s mostly due to Canadians looking for lower priced bargains in the US. If you’re really hardcore you head to Portland where there is also no sales tax.

Bellingham Washington’s economy depends a lot on Canadians shopping, when the Canadian dollar goes down then local sales also go down. Now that the Canadian dollar is higher, Bellingham merchants are making a killing.

Coming back into Canada is also a long wait and the custom folks most likely have heard every story possible when asked “do you have anything to declare”. They’re pretty lenient usually and people get to bring back more than what they should duty free.

End result is that Canadian retail business are really hurting, especially those near the boarder. People always ask why goods are much cheaper in the US and Canadian merchants ask why don’t you support local business? Neither question usually gets answered, so things never change.

Phil.

03-29-2011, 11:07 AM   #17
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It's not just retail profit.

It's shipping costs. Storage costs. Labour costs. Overhead costs. Taxation.

Many of which are not fixed per unit.

Plus.

Currency exchange.

The risk cost of currency exchange: the less stable the currency, the greater the insurance premium that gets factored into the cost.

Plus.

Market power.

Competition.

Regulation....

All of which may exist because frankly there are things you DO want more than cheap retail.

In other words, the whole of the economic machine.

"Profits" tend to evaporate when examined under the light.

Unless it's a bank.
03-29-2011, 06:24 PM   #18
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And these costs dont exist when USA importers bring in their goods.


QuoteOriginally posted by asaru Quote
It's not just retail profit.

It's shipping costs. Storage costs. Labour costs. Overhead costs. Taxation.

Many of which are not fixed per unit.

Plus.

Currency exchange.

The risk cost of currency exchange: the less stable the currency, the greater the insurance premium that gets factored into the cost.

Plus.

Market power.

Competition.

Regulation....

All of which may exist because frankly there are things you DO want more than cheap retail.

In other words, the whole of the economic machine.

"Profits" tend to evaporate when examined under the light.

Unless it's a bank.
03-29-2011, 08:10 PM   #19
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^They are different in different parts of the world. That's all.

03-30-2011, 01:44 PM   #20
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My friend from Buffalo told me that Canadians would drive across the border wearing 10 layers of their old clothes, and a mile before the border going back INTO Canada, the road was discarded with this littered clothing:

Which had been replaced on their bodies by their new American purchases.

Mind you, he's been in Florida for 20 years, so this was back when.
03-31-2011, 11:16 AM   #21
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QuoteOriginally posted by Ira Quote
My friend from Buffalo told me that Canadians would drive across the border wearing 10 layers of their old clothes, and a mile before the border going back INTO Canada, the road was discarded with this littered clothing:

Which had been replaced on their bodies by their new American purchases.

Mind you, he's been in Florida for 20 years, so this was back when.
If you go into one of the last rest stops on Interstate I-5 before the Canadian border, you’ll find the garbage cans full of electronics packaging, clothes and so on.

We’re all “Green” now and don’t litter any longer!

Phil.
03-31-2011, 01:31 PM   #22
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QuoteOriginally posted by gofour3 Quote
If you go into one of the last rest stops on Interstate I-5 before the Canadian border, you’ll find the garbage cans full of electronics packaging, clothes and so on.

We’re all “Green” now and don’t litter any longer!

Phil.
Gotta keep up Canada's beautiful image

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