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34 votes
Why is exchange rate important in international trade

User Esdras Beleza
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2 Answers

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14 votes

Exchange rate and international trade Exchange Rates are vital for all countries as they determine the level of exports and imports. When a domestic currency is to depreciate with respect to a foreign currency, then the imported goods would be expensive in the domestic market and vice versa.

User Sam Mefford
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28 votes
28 votes

Answer:

A higher value country makes a country's imports less expensive and it exports higher valued things

User MeeChao
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