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1. increase the demand of forgin currency in country

2. increcase of the money supply in the country

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Q: What is the cause of devaluation in regarding of exchange rate in the country?
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How does a country balance of payments affect the value of its currency?

can cause fluctuations in the exchange rate between its currency and foreign currencies.


What happens to a nation's balance of trade when its currency depreciates?

If a country begins to decrease it currency and at the same time it has trade deficit. Than, this depreciation will increase the export volume of that country. Because of the domestic goods of that country are now available at lower rate. But it also depends upon the exchange rate of other countries either it is same or also changed. For example in 1997-98Asian crises, reduce the exchange rate of many Asian counties that cause an increase the demand of their products. Like Thailand exports of fish increased.


Why do the exchange of trade goods and ideas go together?

of ourse cause your empty strike one


Explain using economic models how an exchange rate is determined under a floating exchange rate regime What are the factors that can cause an appreciation in exchange rates Malaysia has recently cha?

Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.


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Historical background has to do with information regarding the formation date, time of the event, activities, and the business that occurred. What was the cause or causes that lead to this happening and so much more.

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How does a country balance of payments affect the value of its currency?

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What happens to a nation's balance of trade when its currency depreciates?

If a country begins to decrease it currency and at the same time it has trade deficit. Than, this depreciation will increase the export volume of that country. Because of the domestic goods of that country are now available at lower rate. But it also depends upon the exchange rate of other countries either it is same or also changed. For example in 1997-98Asian crises, reduce the exchange rate of many Asian counties that cause an increase the demand of their products. Like Thailand exports of fish increased.


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Why do the exchange of trade goods and ideas go together?

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