We must have had different economics courses. As I understand it, the
weaker dollar makes American goods more attractive to overseas buyers,
not less attractive. Elecraft and other companies that price their
rigs in dollars receive the same income in dollars when they sell a
rig overseas as when they sell it here. But as the rig is effectively
cheaper overseas, they sell more and their income in dollars goes up.
Your analysis of the consumption side of the story is on target, but the
whole economic picture involves a production side, too.
It is costing Elecraft more to buy parts, many of which come from
off-shore sources. And the cost of transportation is up as well. Those
cost escalations affect the margin adversely for a given price. To
obtain and maintain a reasonable profit, prices need to be raised.
Gus Hansen
KB0YH
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