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Which of the following would not be used by an exporter with a weak home-country currency?

1) Importing goods
2) Exporting goods
3) Borrowing money
4) Investing in foreign currency

User Andy King
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1 Answer

1 vote

Final answer:

A weak home-country currency can make importing goods and investing in foreign currency more expensive for exporters. However, it can make exporting goods more attractive to foreign buyers. Borrowing money can also be advantageous during this situation as the weak currency lowers the cost of servicing foreign currency debts.

Step-by-step explanation:

A weak home-country currency can have various implications for exporters. Importing goods and investing in foreign currency would typically be more expensive for an exporter with a weak home-country currency. On the other hand, exporting goods can become more attractive as the weak currency makes their products relatively cheaper for foreign buyers. Borrowing money can also be advantageous for exporters during this situation as the weak currency can lower the cost of servicing foreign currency debts.

User Liam Kelly
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