Explains the price differences you see e.g. in German cars between prices asked in Europe and prices asked in the US. You pay around 40-50% more for a BMW/Mercedes/Porsche etc. in Europe brandnew from the factory than in the US.Quote from Daal:
Most imports are priced in dollars so a weak dollar doesnt change anything, exporters to the US are worried about losing US market share if they raise prices so they frequently decide to drawdown their profit margins instead.