There are many changes and adaptations that an expatriate going on assignment must embrace, such as new social cues and manners that must be accepted to survive in new surroundings—perhaps an entirely new language, new and exotic foods, and a new style of conducting business to adjust to the demands of a new culture. While most of these issues can be addressed and prepared for before the expatriate even leaves American soil, there is one surprise that has come up in recent years that is sure to get them: sticker shock on everything from groceries to housing.

An American expatriate living in Europe most likely will have a jaw-dropping experience on his or her first stroll through the local mall or supermarket. A single can of Coca-Cola will cost him or her more than $2. A new Apple iPod Nano will cost $230 while on assignment, as opposed to the $149 in his or her U.S. hometown. A cab ride to a restaurant may be $50, while the same meal that would cost $60 at home now will cost more than $125 ($12 glasses of house wine not included).

The US dollar is now worth about 24 percent less against the euro than it was in 2005, and Americans abroad are feeling every one of those percentage points. However, while the US dollar has been getting weaker and American business travellers, tourists, and US expatriates are feeling the pinch, American companies headquartered in the United States are seeing an increase in exports. Be¬cause this has been positive for the overall global economy, there appears to be two sides to the depreciating US currency.

The cost of goods

Americans with a taste for foreign-made products, whether it be a German-made BMW or a Swiss-made chocolate bar, are paying more—a lot more—for these products because of the current exchange rates. On the flip side, consumers outside of the states are profiting in a big way from the cheap cost of U.S. exports. US manufacturers are finding their products more competitive abroad, and many are thankful for the current situation.

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