Asked in Importing and ExportingBusiness & Finance
Importing and Exporting
Business & Finance
How does exchange rate changes affect imports and exports?
September 13, 2009 6:24PM
If you are exporting and your local currency becomes strong then your products become more expensive for your buyers. If you are importing and your local currency becomes weak then the products you are importing become more expensive.
Asked in Hawaii, Importing and Exporting
Where is Hawaii located and how does this affect there import and export?
Asked in Economics
How does exchange rates affect the economy?
Exchange rates affect the economy by changing the price of exchanging or investing in other countries. For example, when the exchange rate of one country rises relative to another, they are now able to buy more goods from the foreign country but their exports also cost more to foreigners. Therefore, this increases imports, decreases exports by artifically altering the price of exporting and importing. Exchange rates, being related to interest rates, also affect investment and saving between different countries.
Asked in Currency Trading
What are the various factors which affect exchange rate?
When a country exports goods that other countries want to import, that makes their currency valuable. The balance between imports and exports affects the exchange rate. Since this is also a matter that concerns investment, people will be more likely to buy a currency based upon their confidence in the country that issues it. So a whole national economy is assessed.
Asked in Singapore, History of Singapore
PSA Singapore contribution to Singapore GDP?
PSA controls the port. This means imports and exports can be allowed or stopped by PSA if it is shipped. GDP, which is Gross Domestic Product, is commonly calculated by the expenditure method (from wikipedia):GDP = private consumption + gross investment + government spending + (exports − imports) If PSA control part of the imports and exports, he can choose to increase or decrease them. That will affect Singapore's GDP.
Asked in Investing and Financial Markets
How does an increase in a country's exchange rate affect its balance of trade?
If by that you mean what happens if one country's currency appreciates relatively to the rest of the world, then country's exports sell less (because they become more expensive for the foreigner), while its imports increase (because they are cheaper now for the domestic consumer); thus the balance of trade is decreased (because the country is spending more on imports relative to its sales of exports).
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How did the Holocaust affect the money in the us?
Asked in Currency Conversions
Explain what happens if the euro rises against the dollar?
Asked in Importing and Exporting
How does US exports and imports each affect domestic production?
The United States' exports are as much a part of the nation's production as are the expenditures of its own consumers on goods and services made in the United States. Therefore, the United States exports must be counted as part of GDP. On the other hand, imports, being produced in foreign countries, are part of those countries' GDPs. When Americans buy imports, these expenditures must be subtracted from the United States' GDP, for these expenditures are not made on the United States' production.
Asked in South Africa, Africa
How does exchange rates depreciation affect the south African economy?
Asked in Investing and Financial Markets
How does the exchange rate affect the balance of trade?
As a country's exchange rate declines relative to other currencies the cost of its exports declines which typically increases demand for its products by other countries resulting in a positive trade balance. A weak currency also helps a nation achieve a positive trade balance since the cost of imports will increase thus decreasing demand for foreign products by its citizens.
Asked in Economics, Importing and Exporting
How do imports and export affect economic growth and currency stability?
Imports and exports affect economic growth and currency stability by proving the country or city with their own form of income. If a country only imported things for their country all their currency would be going to the place that is exporting the goods to them therefore unbalancing their currency stability. Likewise, if a country only exports things they are promoting their economic growth and currency stability but they will still need some things to be imported or their country will fail.
Asked in Business & Finance, India
How does lowering tariffs affect trade with India?
Asked in US Civil War, Economics
How does a high tariff affect an economy?
Tariff is tax levied on imports and exports and it is a form of protectionist measure. High tariff on imports would have an expenditure switching effect where residents would switch from purchasing imports to goods and services produced domestically. This could also raise tax revenues of government which can be spent back on the economy in terms of unemployment benefits etc. All in all, it will raise the National Income of the economy as consumption and government spending are likely to rise (Components of Aggregate Demand). Tariff on exports would hurt export competitiveness as prices of these goods will generally rise, especially when exports are generally price elastic. This would also deter firms firm from exporting to avoid being taxed. Exports in this case will fall which affects the GDP of an economy. However for countries (eg. China) where their exports are considered cheap and is hurting bilateral ties, an increased tariff on exports could not only solve the problem but also raise tax revenue for the government.
Asked in Business Plans
How government policies may affect business decision making in Malaysia?
Asked in Importing and Exporting
Will the weather in china affect imports to Canada?
Do naturaal disasters affect the way the climate changes?
How would changing the value of the German Mark affect the German people?
When the value of a nations money changes value it can make it worth or worth less. This means it would take more money to buy something when the value goes down. This is called inflation and people have to work more to make enough money to live. The value of a currency is also measured against other currencies and imports/exports will suffer. This in the long run could affect production and the closing of factories thus people loose jobs.
Asked in Law & Legal Issues, Economics
How are the laws of a country based on economics?
Many laws of any country impact that country's economics. Tariff laws on imports and exports affect the price of goods in the country. Laws pertaining to minimum wages affect the living standards of many of its citizens. These laws also impact the cost of goods in a country. Laws that affect the nations national bank or other institutions can play a role of interest rates in that country.
Asked in US Presidents
What decisions by a president affect the direction of the nation's economy?
The President can propose and lobby Congress for programs and packages that are designed to affect the economy The President has the power to veto economic programs, tax hikes or cuts, and expenditures that Congress passes. The President appoints ( subject to Senate approval) the chairman of the federal reserve board who has great control over the money supply and interest rates. The treasury, under control of the President, can take steps that affect the foreign exchange rate and affect the balance of trade and the prices of imports and exports. The President can use his powers of persuasion to prevent and settle strikes in key industries , such as steel, auto, railroads, mining, etc. that affect the overall econom
Asked in Business and Industry
What is the purpose of an exchange rate?
It's important to know the strength of the country's economy through the stability of exchange rate movement and the degree of change, and to know how the economy of the country's trade balance is during any movement of export s and imports. It's also affects the exchange rate on the purchasing power of the individual. In addition, exchange rate benefits by knowing the government policies wither economically or politically, as it affect stability in general and a stable exchange rate for the local currency against foreign currency.