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Exports increase.
Imports decrease.
FDI increases.
Foreign capital investment increases.
Economic growth rises.
Besides these positives there is the negative effect and thats inflation which increases.
Mylene Wintheiser
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How does any currency appreciate or depreciate?
Three major factors that cause a country's currency to appreciate or depreciate relative to another's * Differences in income growth among nations will cause nations with the highest income growth to demand more imported goods. The heightened demand for imports will increase demand for foreign currencies, appreciating the foreign currencies relative to the domestic currency. * Differences in inflation rates will cause the residents of the country with the highest flation ratet to demand more imported(cheaper) goods. If a country's inflation rate is higher than its trading partners', the demand for the country's currency will be low, and the currency will depreciate. * Differences in real interest rates will cause a flow of capital into these countries with the highest available real rates of the interest. Therefore, there will be an increased demand for those currencies, and they will appreciate relative to the currencies of countries whose available real rate of return is low. By Mujeeb
What is The value of a foreign nations currency in terms of the home nations currency?
Exchange Rate.
Is the exchange rate is the price of one nations currency in terms of another nations currency?
Yes, that is correct.
What happens when the US currency strengthens what happens to the euro?
everyone dies
How many nations in the Europe union began using the euro as their common currency beginning in 2002?
12 nations began using the euro
Is it correct to say that the rand can appreciate or depreciate?
Assuming you are referring to the South African unit of currency, YES, the rand can appreciate OR depreciate.
What will happen to the import if the exchange rate increase?
Usually, the currency will depreciate (lose value).
How does any currency appreciate or depreciate?
Three major factors that cause a country's currency to appreciate or depreciate relative to another's * Differences in income growth among nations will cause nations with the highest income growth to demand more imported goods. The heightened demand for imports will increase demand for foreign currencies, appreciating the foreign currencies relative to the domestic currency. * Differences in inflation rates will cause the residents of the country with the highest flation ratet to demand more imported(cheaper) goods. If a country's inflation rate is higher than its trading partners', the demand for the country's currency will be low, and the currency will depreciate. * Differences in real interest rates will cause a flow of capital into these countries with the highest available real rates of the interest. Therefore, there will be an increased demand for those currencies, and they will appreciate relative to the currencies of countries whose available real rate of return is low. By Mujeeb
What is The value of a foreign nations currency in terms of the home nations currency?
Exchange Rate.
Is the exchange rate is the price of one nations currency in terms of another nations currency?
Yes, that is correct.
Is a nations money?
CURRENCY
Why do people invest in low return funds even though their money will depreciate more than they will profit?
people investing in low return fund so as to minimize risk especially risk associated with depreciate of currency value
What is the Asian national currency?
There is no Asian national currency. Asia is not a nation. It is a continent. It has many nations. Each of those nations have their own currencies.
How can you use the word depreciate in a sentence?
The value of the car will depreciate as soon as you drive it off the lot. Less spending made the value of many stocks depreciate.
The rate at which something happens?
Currency
Nations discouraged imports in what would be known as?
Nations discourage imports by tariffs or import duty which are special taxes on imports. If imports are actually fordidden it is called an embargo. Nations could also discourage imports by manipulating the currency exchange rate to make the local currency more valuable in relation to foreign currency.
Why do nations need a system of currency exchange rate?
Nations need a system of currency exchange rate in order to be able to tell the value of their currencies. The exchange rate is set again the price of gold in order to have some uniformity across all nations.
