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Mandarinka [93]
3 years ago
7

25

Business
2 answers:
Anna35 [415]3 years ago
5 0

Answer:

<u>Foreign trade</u>

Explanation:

Often times a major determiner of the value of countries currency is the amount of their exports.

Thomas therefore as a financial advisor <em>should advise the government to build more on production of locally available materials that are highly demanded internationally for exports, by so doing he could improve the country's currency</em>.

Andrews [41]3 years ago
3 0

Answer: The trade element that Thomas should suggest as a focus is Foreign trade.

Explanation: Foreign trade or international trade is the exchange of capital, goods, and services among countries or territories. In most cases, foreign trade represents a significant portion of a country's gross domestic product (GDP).

There are two types of foreign trade:

1. Bilateral trade: trade agreement between two countries.

2. Multilateral trade: this is when a country trades with two or more countries.

The reason why foreign trade should be focused on is that it can be an indicator of a country's currency value, the more the country is involved in foreign trade, the more their currency will be strengthened.

Also, by producing locally made products which are in high demand in other countries, a country can increase its bargaining power and therefore strengthen its weak currency.

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