The decline in the value of the US dollar in the past decade has had a big effect on US purchasing power worldwide. This makes imports more costly for US businesses, and presents difficulties for expats who get their income in USD.
The following chart from http://worldsalaries.com shows the details. For countries like New Zealand with strong currency performance, the cost of living in US dollars increased dramatically. What cost 65 cents in New Zealand in 2001 cost $1.07 in 2005 -- an increase of almost 65% in four years.
