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Assuming all other factors constant,the disadvantages would be:
1. The lower price of imports leads to consumers increasing their demand and this can cause a large trade deficit. Exporters lose price competitiveness because they will find it more expensive to sell in foreign markets and face losing market share - this can damage profits and employment in some sectors and industries.
2. If exports fall, this causes a reduction in aggregate demand and reduces the short-term rate economic growth as measured by the % change in real GDP. Some regions of the economy are affected by this more than others. In the North east for example, manufacturing industry accounts for over 28% of regional GDP whereas the percentage for the UK as a whole is just 19%.
3. because investment is partly dependent on the strength of demand,If exports fall, then so will business confidence and capital investment.
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strong
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Disadvantages of currency appreciation is makes the exports of the domestic economy less competitive in the world markets
What is a strong currency?
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Depreciating currency in a country will determine how strong the current economy of a country is. If the currency drops then their economy is stronger and more investements are in while if the currency exchange is high, there is depreciating economy against other countries.
When you buy another currency do you want a weak or strong currency?
strong
What are the advantages and disadvantages of Currency Appreciation?
Disadvantages of currency appreciation is makes the exports of the domestic economy less competitive in the world markets
What is strong currency?
A strong currency is essentially what the name says. It is a current that is stronger than most currents or it is improved.
What is a strong currency?
A strong currency is essentially what the name says. It is a current that is stronger than most currents or it is improved.
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What were the disadvantages to use sliver as a currency?
the disadvanteges of using silver is silver would not stay around longer but using the currency metals used in quarters will last longer
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