Market Selection.
Major strategic considerations for an exporter are the markets in which to sell—that is, market selection—and the relative marketing support to devote to each market. As a result of the strong dollar during the early 1980s, for example, some discouraged U.S. firms pulled out of markets that foreign competition made unprofitable. From the perspective of foreign companies, however, the strong U.S. dollar was a golden opportunity to gain market share at the expense of their U.S. rivals. Japanese and European companies also used their dollar cost advantage to carve out market share against American competitors in third markets. The subsequent drop in the dollar helped U.S. firms turn the tables on their foreign competitors, both at home and abroad. A similar situation occurred when the strong dollar of the 1990s turned into the weak dollar of the 2000s.