If a us dollar is worth 2 units of currency in another country....?

Question

does that mean it's 1/2 as expensive to visit? what about if another country's unit is more. it's more expensive for me to visit? or is it like converting inches to centimeters. different units, but same value?

basically, will i spend less of my us income in a country whose unit is worth less, and the opposie in a country whose unit is worth more?

Answer 1

No, because it will cost (generally) two of the other country's currency to buy what you could get for one dollar here.

Let's call the other country's currency "popcorn." For example, if a soda here is $1, you could not buy a soda in the other country for one "popcorn" -- it would cost two "popcorns" a/k/a one dollar.

Some places are more (Tokyo) or less (Mexico) expensive than the US, but not because of the exchange rate. There is no free lunch in the universe.

Answer 2

You have the basic concept right. But, keep in mind, many countries economies will "adjust" to the US dollar.

So, if one dollar is worth two units from another country... A load of bread may cost 2USD... but the other country may adjust to 4 units in their currency.

Right now, countries like Thailand, Malaysia, and Indonesia are still good travel bargains regardless of the fact that the USD is at its weakest point in ten years.