One of the first things that strike Americans traveling or doing
business in Israel is the exchange rate between the U.S. Dollar and the New
Israeli Shekel. Of course, most are extremely happy when they leave the
local exchange office or bank with a large wad of bills where they
previously had but a few. This is because the current rate of exchange
between the dollar and the shekel is 4.48 NIS per one dollar.
Unfortunately, this exchange does not necessarily mean that you can
buy more in Israel. Take, for example that one wishes to purchase the
latest souvenir t-shirt, say "I got stoned in Gaza." Now, of course it is
normal to salivate over such a beauteous find. However, upon asking the
price of this apparel gem, one's mouth may soon revert to its formerly
parched state (completely normal in Middle-Eastern climes). Especially
when the shopkeeper grandly announces that the item will cost you 89.58
NIS. Whoa, doggy! That seems like a lot. In actuality, however, the
Thus, one can see that in most markets it is not the amount of a
particular currency that matters, but just how much that amount actually
buys in the marketplace. For example, if one were importing the Gaza t-
shirts, they would be of a relatively normal price after the cost is
converted to dollars. What affects the price of the product as far as
market fluctuations is the real value of the currency exchanged. This
hinges on many complex factors, including (foremost) the economic health of
each country involved. This means that if the overall price of goods is
expensive in a given country, compared to the country one is importing to,
the price of the item will be expensive to import and expensive for the
consumer to buy. However, if the cost of the goods is relatively
inexpensive compared to comparable goods in the importing country, the
import cost will be low, as well as the price tha
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