When the price of a nation's currency goes up, ?
what would you expect to happen to its exports?
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This entry was posted on Wednesday, July 2nd, 2008 at 3:21 am and is filed under Currency Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
July 2nd, 2008 at 3:21 am
you mean value not price of money… learn how to ask a question.
July 2nd, 2008 at 3:21 am
It's imports would rise because they could buy more cheaper outside the nation. A rise in imports would lower exports, because it would cost a foreign country more to buy from them.
July 2nd, 2008 at 3:21 am
Exports will decline as a Currency's value increases. Because all those foreign countries cannot afford the increased cost.
Imports Love a Strong Currency
Exports Love a Weak Currency.
July 2nd, 2008 at 3:21 am
It will not be able to export as much as before because the goods now effectively cost more as a result of the appreciation of the currency.