answersLogoWhite

0

Advantage
increases supply of exports in response to higher demand without increasing the price. Since currency is devalued and difference between currency value of country where supplies are exported and currency of import country are fairly large. Hence supply will fetch more money to country

Disadvantage
In case of import of inelastic demands, importer, having currency devalued, has to pay more money to foreigners. Hence discourage inflow of goods and services to country.

Prateek Caire

User Avatar

Wiki User

15y ago

What else can I help you with?

Related Questions

How does a country causing a devaluation of its currency lead to an increase in what?

A country causing a devaluation of its currency can lead to an increase in exports.


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 the definition of devaluation of Indian currency?

The definition of devaluation of Indian currency is the loss of the value of the currency. This is a an adjustment of the country's currency value downwards compared to other major currencies in the world.


Drop in value of a currency pegged to gold or another currency?

Devaluation


Devaluation of currency leads to?

the stoppage of consumer


What holds value in a currency devaluation?

Premium Bonds


What is a reduction of the value of a nation's currency relative to the currencies of other countries is called?

A Currency Devaluation


Differences between currency depreciation and apreciation?

Devaluation and depreciation are often interchangeable, although there is a subtle difference. Devaluation refers to changing the value of a currency in a fixed exchange rate, while depreciation is decreasing the value in a floating exchange rate.


What is the Outcome of devaluation of currency?

Devaluation makes ac country's exports relatively less expensive for foreigners and secondly it makes foreign products relatively more expensive for domestic consumers,discouraging imports. As a result, this may help to reduce a country's trade deficit.


What is advantages and disadvantages Fiat money?

It is easy to print, easy to transport, divisibility is also easy and has intrinsic value. The disadvantage is that it does not have back up value and also subject to inflation and devaluation


Can you say devaluation of the society?

No. Devaluation is applied to an object which has a measurable value (such as currency). You could use the words decay, collapse or disintegration to refer to society.


What has the author Peter Holmes written?

Peter Holmes has written: 'Industrial pricing behaviour and devaluation' -- subject(s): Commerce, Devaluation of currency, Pricing