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> when you import, you send your currency overseas to pay for the goods. As a general rule, this is false. Mexican importers do not pay for U.S. goods in pesos

> when you import, you send your currency overseas to pay for the goods. As a general rule, this is false. Mexican importers do not pay for U.S. goods in pesos. With few exceptions, importers have to sell their local currency on the market, exchange it for the exporter’s currency, and pay for the goods with that. Some exporters will accept the importer’s currency as an accommodation, but they’ll just sell the currency to exchange it for their own, because they have to pay for everything at home with the local currency. If I were a U.S. exporter, I couldn’t pay for my groceries with Euros.

fsckboy 2y ago
if you look at the net movements of currency, whether the buyer exchanges or the seller, or some third party or central bank, the net movement is the same and what I said is correct. When analyzing math problems you simplify things to be able to see what is happening more clearly; you are introducing complications as if they change what is happening, but they don't.
- otterley 2y ago
  It’s not a math problem, and you’re wrong. The importer is not sending his nation’s currency to the exporting country in any sense. If you’re going to argue any more on this subject, please come armed with reputable references.
  - fsckboy 2y ago
    economics is not a math problem? have you ever studied it? sounds like you have not. At the better schools, calculus is a prerequisite to study econ.
    - otterley 2y ago
      I minored in Econ at a top tier university. There is indeed math you need to know to understand economics, but economics is not a branch of mathematics. There’s also behavioral understanding as well as practical knowledge. I would advise you to kindly take the L here and please stop trying to weasel your way around being wrong. People make mistakes; it’s how they respond when being confronted with their errors that demonstrates their character.
      - fsckboy 2y ago
        >>me: when you import, you send your currency overseas to pay for the goods. >you: As a general rule, this is false. Mexican importers do not pay for U.S. goods in pesos initial conditions: americans have only dollars. mexicans have only pesos. american sellers demand to be paid in dollars. any mexican who wants to buy american goods must convert their pesos to dollars. where do they get dollars? see initial conditions, they must get them from americans by sending their pesos overseas. it's that simple. now, when you run these economies with several million people importing and exporting in both directions, sure, there would be dollars in mexico and pesos in america. but why would you complicate a simple analysis with all of those other transactions when the simple case influences the outcome in the right direction and makes it easy to see what's happening?
        otterley 2y ago
        > any mexican who wants to buy american goods must convert their pesos to dollars. where do they get dollars? see initial conditions, they must get them from americans by sending their pesos overseas This thread is over. I asked you to come back armed with references to support your claims and instead you continue to spout nonsense. Currency exchange simply doesn’t work the way you describe, full stop.
        fsckboy 2y ago
        >Currency exchange simply doesn’t work the way you describe currency exchange can work many different ways, but it can't violate thermodynamics or fundamental laws of physics. It also cannot violate the axioms of math, which is what I described. If a Mexican wants dollars, they need to buy them from somebody who has them. Even if there are billions of dollars in Mexico, if Mexico is exclusively importing from the US forever (which are the conditions of the question above) those billions of dollars will be transferred to the US and Mexico will run out of that supply of dollars and will have to find some new way to get them from the US.
        otterley 2y ago

fsckboy 2y ago

if you look at the net movements of currency, whether the buyer exchanges or the seller, or some third party or central bank, the net movement is the same and what I said is correct. When analyzing math problems you simplify things to be able to see what is happening more clearly; you are introducing complications as if they change what is happening, but they don't.

otterley 2y ago
It’s not a math problem, and you’re wrong. The importer is not sending his nation’s currency to the exporting country in any sense. If you’re going to argue any more on this subject, please come armed with reputable references.
- fsckboy 2y ago
  economics is not a math problem? have you ever studied it? sounds like you have not. At the better schools, calculus is a prerequisite to study econ.
  - otterley 2y ago
    I minored in Econ at a top tier university. There is indeed math you need to know to understand economics, but economics is not a branch of mathematics. There’s also behavioral understanding as well as practical knowledge. I would advise you to kindly take the L here and please stop trying to weasel your way around being wrong. People make mistakes; it’s how they respond when being confronted with their errors that demonstrates their character.
    - fsckboy 2y ago
      >>me: when you import, you send your currency overseas to pay for the goods. >you: As a general rule, this is false. Mexican importers do not pay for U.S. goods in pesos initial conditions: americans have only dollars. mexicans have only pesos. american sellers demand to be paid in dollars. any mexican who wants to buy american goods must convert their pesos to dollars. where do they get dollars? see initial conditions, they must get them from americans by sending their pesos overseas. it's that simple. now, when you run these economies with several million people importing and exporting in both directions, sure, there would be dollars in mexico and pesos in america. but why would you complicate a simple analysis with all of those other transactions when the simple case influences the outcome in the right direction and makes it easy to see what's happening?
      - otterley 2y ago
        > any mexican who wants to buy american goods must convert their pesos to dollars. where do they get dollars? see initial conditions, they must get them from americans by sending their pesos overseas This thread is over. I asked you to come back armed with references to support your claims and instead you continue to spout nonsense. Currency exchange simply doesn’t work the way you describe, full stop.
        fsckboy 2y ago
        >Currency exchange simply doesn’t work the way you describe currency exchange can work many different ways, but it can't violate thermodynamics or fundamental laws of physics. It also cannot violate the axioms of math, which is what I described. If a Mexican wants dollars, they need to buy them from somebody who has them. Even if there are billions of dollars in Mexico, if Mexico is exclusively importing from the US forever (which are the conditions of the question above) those billions of dollars will be transferred to the US and Mexico will run out of that supply of dollars and will have to find some new way to get them from the US.
        otterley 2y ago