Comments on: Explain why a currency depreciation can improve a nation's balance of trade.? http://www.myylt.com/2009/05/26/explain-why-a-currency-depreciation-can-improve-a-nations-balance-of-trade/ Discussion of Forex Trading and Currency Trading Wed, 23 May 2012 00:44:52 +0000 http://wordpress.org/?v=2.3.3 By: Ryan http://www.myylt.com/2009/05/26/explain-why-a-currency-depreciation-can-improve-a-nations-balance-of-trade/#comment-14824 Ryan Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/05/26/explain-why-a-currency-depreciation-can-improve-a-nations-balance-of-trade/#comment-14824 Well balance of trade is exports minus imports(for basic purposes we can assume this). So if the value of a nations dollar goes down that means that other currencies can buy stuff denominated in the deprecated currency cheaper. So more people will buy their good. This improves the nations exports. So if we hold imports constant... the balance of trade improves. Well balance of trade is exports minus imports(for basic purposes we can assume this).

So if the value of a nations dollar goes down that means that other currencies can buy stuff denominated in the deprecated currency cheaper. So more people will buy their good.

This improves the nations exports. So if we hold imports constant… the balance of trade improves.

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