This factor is a double-edged sword.

[keannu]

What factor does "This factor is a double-edged sword." mean? I don't get the meaning of the sentence. I provided enough context.

pr32
ex)An important factor in international travel, and in the long-term growth of the United States as a destination, is currency fluctuation. Following World War II, the U.S. dollar was the strongest currency in the world....
By the 1970s, however, that recovery was complete, and other currencies gained against the dollar. In the 1980s, economic growth in many of these countries accelerated the dollar's weakening trend. The cheaper dollar, then, made the United States a travel bargain, and travelers to the United States and travel spending increased dramatically. This factor is a double-edged sword. When Asian currencies crashed in 1996 and 1997, the visitor flow from those countries to the United States slowed appreciably...

 

[SoothingDave]

Double-edged sword - Definition and More from the Free Merriam-Webster Dictionary

 

[keannu]

So I think the contradicting consequences are cheaper, devaluated dollars(bad unfavorable aspect), which affected trading badly and the increased travel to the US(good favorable aspect), which boosted growth of tourism to contribute to earning foreign currencies. What do you think?

 

[SoothingDave]

Yes. When dollars are strong it is easy to buy foreign things, but you don't have a lot of foreign spending (travel) in the US. When the dollar is weak, it's the other way around.

If your business depends on selling overseas, you like a weak dollar. If your business depends on buying overseas, you like a strong dollar.

 

[Barb_D]

Or more simply, the way currencies are valued can work for you or against you. In your favor when you have a weak dollar (if you are looking for tourists) and against you when you become too expensive for foreign tourists.

 

[keannu]

Maybe you are right! I extended the scope even to commerce of import and export, but the text has no part related to commerce except travel. One thing doubtful is that "double-edged sword" has both favorable and unfavorable result at the same time, but in your case, it should switch to the other state to have the opposite result. I mean at strong currency, low travel and at weak currency, high travel.

 

[Tdol]

It extends to anything affected by the value of a currency.