After world war two, the world was a mess. regions like spain and italy were rated poorly for their economic strength, due to having a ravaged economic climate, which has since recovered, yet nobody has noticed! how weird... So, if they are producing superior european goods, like in portugal, spain, italy - and greece maybe? - these former world powers and empires still have the same culture pushing them forwards, but are getting paid too little for their efforts. it is clear these products are superior, quality and grade wise, but this is not reflected in the pricing of their currencies. For example, japan sided with the germans and got nuked. their yen went south, and then they got bought up by america who found them logistically a good partner, and they have impoverished them ever since, which is why it is so expensive to live there, of course. What is the current value of these post war currencies and economies? only time will tell, but, investing in them would be a steal, you bet cha!
Other currency regions and groups that suffered after world war two, and due to quality, are under priced, would be egypt, libya, morroco and tunisia - all those on the mediterranean. these were rather strong once, serving the forces of europe with close range products and low logistics costs. Then, where did they arrive at their 'valuable currency strength' from? why they leached off all the countries south of them on the north east of africa, of course. this logisitics supply at least went to central africa, where timber was harvested, and then down into sub saharan africa, where zimbabwe was the breadbasket of africa. tanzania and ghanan are two of the few unaffected countries regarding currency strength, even mozambique was affected and still fights wars, so maybe that would be a a bad idea? I am sure there is some overvalue of the british pound, as they produce very little. this means they will have more jobs and exports if they were to see their currency devalue, of course... maybe they would like that?
that is insane gibberish of course . If they were getting paid too little they would raise their price
What you need to understand is that market price is not necessarily the same thing as value. Here's an example: The going price of houses in a certain community is 600,000. This is because there is no more land in the area to build on and only a few of the houses go up for sale any given year. There are a lot of buyers competing for a small number of available houses. But does that mean that every house in the community is "worth" 600,000 ? (Suppose for the sake of economic simplicity that all the houses are exactly the same) What if all the houses went for sale at the same time? Let's say there are 1,000 houses in this area. Well it seems obvious that the entire community is not just simply worth 600 million (1,000 houses multiplied by 600,000 per house). There do not exist enough buyers willing to pay this amount. In a similar way, the economies of poorer countries are actually worth more but this is just not reflected in the exchange rates, because exchange rates only reflect a small portion of the economy that happens to be in current international exchange. I can assure you that if the products in countries such as Spain and Thailand suddenly became much more in demand (in quantity, not in price I am talking about), the currency exchange rates would suddenly shift, and would more accurately reflect their "economic value" in a way more comparable to other countries.
totally wrong, you have yourself 100% confused. if worth more people would pay more until the price went up enough to reflect the exact worth regardless of exchange rate. Econ 101 class one day one. Sorry
