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Why do things cost more for Europeans when the dollar is weaker than the euro/pound?

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Why do things cost more for Europeans when the dollar is weaker than the euro/pound?

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  1. The comparatively weak dollar should only effect US imports.

    VAT taxes make EU goods cost more.

    The US has cheaper labor in service industries  so warehousing and retail services cost more in Europe.

    High cost of food because the shortage of land produces  less efficient farms.

    This does not explain all the differences and the high density of population is also partly responsible. Many things cost more in the high density regions in the US as well.


  2. Standardized health care.  The cost of production starts out more and inflates pricing.

  3. The dollar is the worlds reserve currency . As such trade is carried on in dollars . The weaker the dollar the more it will cost the traders to make a profit .

  4. Typically they shouldn't.  So likely it has less to do with the trade affects of a weak dollar and more to do with inflation.  Historically more financial capital flows into European markets when the U.S. is struggling so that can contribute to an excess of money and thus inflation.

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