Ok, pretend I'm absolutely retarded.... Can someone explain how/why exchange rates even work? "Why" is a dollar not a dollar in other parts of the world? In theory, to me, if say, one dollar is worth 600 yen, then they should have the same purchasing power, and there shouldn't really be a difference in how rich or poor one nation is, right? Or rather... if I need 5 dollars for something in America, why do I not just need the equivalent in local currency elsewhere (in a vacuum disregarding taxes and other costs).