Answer:
Exchange rate appreciation
Step-by-step explanation:
Exchange rate appreciation is when there is an increase in the value of country 'A's currency when compared with county 'B' s currency. A country's exchange rate would appreciate if it is experiencing higher economic growth, fewer or lower rate of inflation etc.
The effect of exchange rate appreciation is that the value of the currency for a country whose exchange rate appreciate against the other country will be higher hence makes import cheaper for them whereas export becomes more expensive. There could also be a reduction in inflation for a country whose currency appreciate because most firms would usually cost costs and also because import prices are falling.