Question

17

Answer 1

The following are matches of the situations to the strength of the currency in the country:

Strong currency:

• Exporters stand to gain: The exporters sell the commodities to the importer in the domestic currency which is stronger in comparison to the currency of the importer.
• Trading partners in other countries tend to lose: The currency in the other country is weaker and hence trading partners have to face loss.
• Importers stand to lose: The currency of the exporter dominates the currency of the importer.

Weak currency:

• Importers stand to gain: The commodities made at the expense of a weaker currency are exported to gain a stronger currency from the importer.
• Exporters stand to lose: The currency of the importer is stronger than the currency of the exporter.