Recently, they have given some attention also to the effects a changing dollar has on the economic activity of states and regions. Movements in exchange rates can have different effects across states for several reasons. Some states specialize in the production of certain goods. Some make goods that are more exportable than others. And some are better positioned geographically for foreign trade. According to recent studies, movements in the exchange rate appear to have their largest effects on states in the East North Central, West North Central, and Mountain regions.
This article appeared in the September/October 1990 edition of Business Review.View the Full Article