0
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.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Why does the demand curve slope downward in a foreign exchange market?
When foreign exchange rate decreases, the product of that particular country becomes cheaper as its currency depreciates. Therefore, the quantity demanded of that currency will increase as consumers from other nations wish to take advantage of the depreciating currency.
What happens if the dollar price of yen rises?
the dollar depreciates relative to the yen.
What happens when the euro depreciates against the US dollar?
we all go broke
What is the relationship between interest rate and discount rate?
When interest rates increases currency value appreciates while when interest rate decreases so the currency rates depreciates
What is The value of a foreign nations currency in terms of the home nations currency?
Exchange Rate.
Why does the demand curve slope downward in a foreign exchange market?
When foreign exchange rate decreases, the product of that particular country becomes cheaper as its currency depreciates. Therefore, the quantity demanded of that currency will increase as consumers from other nations wish to take advantage of the depreciating currency.
What happens if the US dollar depreciates?
If the US dollar depreciates, the currency pairs such as EUR/USD, AUD/USD, GBP/USD...., and commodities that dominated in US dollar including Gold, Silver... will go up. In terms of investment, capital will run out of US and flow into areas which have higher rates. Reference: Alpari analytics
What happens if the dollar price of yen rises?
the dollar depreciates relative to the yen.
What happens when the euro depreciates against the US dollar?
we all go broke
What is the relationship between interest rate and discount rate?
When interest rates increases currency value appreciates while when interest rate decreases so the currency rates depreciates
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
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.
Can anybody really know what the value of currency is?
Generally, yes, because most countries use flexible exchange rates and so arbitrage ensures that the value of a currency is determined accurately (i.e. if the currency was overvalued for some reason, experienced for-ex traders would realise and cause it to fall). If the exchange rate is fixed you can't tell if it's valued correctly because it is usually pegged on another exchange rate (so if the other currency depreciates the government will make sure that their currency depreciates). This means that the value of the exchange rate doesn't reflect what is going on in the economy, it reflects what is going on in the other economy.
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.
The rate at which something happens?
Currency
