Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its currency undervalued give it a favorable position in international trade? What about from the viewpoints of international companies and consumers?

Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: What  does Mexico import?

A: In international trade, the goods and services are exchanged from one country to another in terms of…

Q: Explain 3 factors why countries would want to join a Single Currency area.

A: Under the single currency area, different economies used a single currency in order to get benefits…

Q: Why does the decline in value of a certain currency cause imports to be expensive and exports…

A: Demand-pull inflation/demand-side inflation arises when the aggregate demand (AD) rises faster than…

Q: Explain why, despite comparative cost disadvantages, countries might tend to protectionism for…

A: Protectionism : Protectionism refers to the deliberate practice of limiting imports or promoting…

Q: If the trade deficit of the United States increases, how is the current account balance affected?

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: If the dollar increases in value against your INR(It takes more foreign currency to buy one dollar,…

A: Currency appreciation and depreciation refer to changes in the value of a currency relative to other…

Q: list all the countries in the world and their trade currencies

A: Here is a more comprehensive list of countries and their official currenciesAfghanistan: Afghani…

Q: Will nations that are more involved in foreign trade tend to have higher trade imbalances, lower…

A: Foreign trade pattern is depending upon many factors and it is not predictable.   The trade patterns…

Q: explain the process of Exchange Rat

A: Exchange rate provides the value of domestic currency in terms of foreign currency.…

Q: Countries which export more than they import have a balance of payments    trade surplus…

A: The statement that reflects the transactions between one country and the rest of the world is known…

Q: How will change in interest rate affect trade financial and capital account

A: The financial account provides information about the increase or decrease of international assets.…

Q: What must be done to tilt the balance of trade in favor of south Africa

A: The balance of trade, also called the trade balance, is the difference between the value of a…

Q: What downsides might Brazil experience by implementingquotas, tariffs, and measures to devalue its…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Discuss how government intervention in the foreign exchange market can effect economic conditions of…

A: 1.Government intervention in foreign exchange market. There are 2 types of foreign exchange rate:…

Q: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: Discuss exchange rates and their influence on international trade and capital flows.

A: Exchange rates assume a vital part in the worldwide economic landscape, filling in as a critical…

Q: Evaluate how an appreciating US Dollar could hurt an economy

A: Appreciation is the rise in the value of a country's currency with respect to other country.…

Q: Is international trade good for the US economy and why? Is it good for the consumer? Is it good for…

A: International trade means exchangimg goods and services among nations in order to economic growth…

Q: ite and explain the main uses of foreign exchange markets for international business.

A: The marketplace where participants can buy, sell, trade, and speculate on currencies is known as the…

Q: What are Special Economic Zones. What value do they offer companies in entering an international…

A: A special economic zone is a region in a nation that is put through different economic regulation…

Q: In your opinion, how can we attract new foreign investors to our country in order to develop our…

A: Foreign investment refers to a situation when the individual from a foreign country invest in…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: Why is it difficult to set international prices?

A: It is observed that when a company operates internationally it has to set its price and product on…

Q: Clarify why companies may need to use modes other than exporting to operate effectively in…

A: The modes other than exporting are: 1. Franchising and licensing 2. Strategic alliances 3.…

Q: Demand for a country’s exports leads to demand for its currency.

A: Value of currency fluctuate according to the trade pattern.

Q: What effect will a change in the price of oil have on the foreign exchange market of a developing…

A: The foreign  exchange  market is a  decentralized  global  marketplace  where currencies  are…

Q: , if a fo

A: Tariffs are taxes being imposed by the government on imports. They would raise the price for…

Q: Why do you think balance of payments serves as a tool for exportation and importation?

A: The measure that depicts a record of all of the transactions of international trade and also…

Q: what specific kinds of domestic institutions leads to protectionism and liberalization?

A: Trade liberalization  has always bene one of the controversial topics and it has been opposite to…

Q: NAFTA has improved Mexico-U.S. trade and investment, yet, bilateral trade between the United States…

A: Trade means goods and services are exported to other countries and imported from outside the…

Q: How will currency appreciation make imports cheaper and exports more expensive, causing the trade…

A: Increasing the value of country’s currency against other country’s currency is termed as…

Q: Imports of goods and services is not a source of demand for foreign exchange True/False

A: The requirements for foreign currency to cover the payments is refferd to be as the demand for…

Q: How does a depreciation or devaluation of a nation’s currency operate to eliminate or reduce a…

A: Introduction  A country devalues ​​its currency to combat a trade imbalance, which means that an…