Tuesday, October 19, 2010

Crisis Effect

The economic crisis as we may have known happen to many countries before, affect to the money value of some crisis country, their money value will down because their product price too high and cannot be sell to other countries. To make their product can compete with other country they should sell their product cheaper than before. On the crisis country merge many bankrupt company, and create so many unemployed people,
because of many unemployed eventually they must be willing to earn less or with less facilities, in order to reduce expenditure. By this system they can sell cheaper product, even with cheaper salary.

American crisis make American Dollar value down to about Rp. 8,900 from about Rp. 9,500 per dollar, but Yuan have increase their value and make their product more expensive than before. On this condition make Chinese product difficult sell to Indonesia, because their product rise more than 10 percent. Competition among established country will happen, because they all need market, need money to make live goes on. Indonesia last time also export many product to US, but after the value of US become down, some products are not sell to America and sell to local country. Many country will sell their product to their own country.

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