American cruise ship passengers put exchange rate to good use in Vancouver (CBC News)

The fall in the price of the Canadian Dollar has encouraged American tourists to purchase and spend these dollars in large amounts, taking advantage of the cheaper real prices of Canadian goods and services. Two years prior the Canadian Dollar was worth approximately the same as the US Dollar, but now it is worth $1.25 per US Dollar. This has caused a large increase in tourism in Canada from the United States and many tourists claim to purchase more goods and services, increasing profits for businesses.

While the US Dollar is stronger than the Canadian Dollar, US imports from Canada will rise while US exports to Canada will fall due to the increased purchasing power of US Dollars. Over time, the exchange rate will self-correct since the increased demand for Canadian Dollars will increase its price. During this process, US imports from Canada will decrease and US exports to Canada will increase as the Canadian Dollar regains its purchasing power and returns to its equilibrium price.