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Exchange Rates - Currency Devaluation
Economics
Can anyone explain why is it option B? If currency devaluation happens then 1$ becomes â?¹105 if it is â?¹100 before. Then how can it reduce exports ? Correct me if I'm wrong
Answers (4)
Best Answer
Please read the option carefully It is written that it will reduce export prices. And if prices will reduce then it will increase international competitiveness of domestic products and people will buy more our products because now they can buy commodities of â?¹5 extra from our country
deepanshu chandwani
Please read the option carefully It is written that it will reduce export prices. And if prices will reduce then it will increase international competitiveness of domestic products and people will buy more our products because now they can buy commodities of â?¹5 extra from our country
So the foreign market get the same goods at low price or more goods at same price and hence our domestic markets has upper hand there?
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