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Varvara68 [4.7K]
2 years ago
10

How does the exchange rate affect international trade

Business
1 answer:
horrorfan [7]2 years ago
7 0

Answer:

The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.

Explanation:

yee

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