answersLogoWhite

0


Best Answer

If you are exporting and your local currency becomes strong then your products become more expensive for your buyers. If you are importing and your local currency becomes weak then the products you are importing become more expensive.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How does exchange rate changes affect imports and exports?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

How did giography affect the economy?

Geography has affected imports and exports, if objects are exported overseas then they are subject to different taxes.


What are the various factors which affect exchange rate?

When a country exports goods that other countries want to import, that makes their currency valuable. The balance between imports and exports affects the exchange rate. Since this is also a matter that concerns investment, people will be more likely to buy a currency based upon their confidence in the country that issues it. So a whole national economy is assessed.


What happens if the euro rises against the dollar?

If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.


Explain what happens if the euro rises against the dollar?

If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.


How does US exports and imports each affect domestic production?

The United States'exports are as much a part of the nation's production as are the expenditures of its own consumers on goods and services made in the United States. Therefore, the United States’ exports must be counted as part of GDP. On the other hand, imports, being produced in foreign countries, are part of those countries' GDPs. When Americans buy imports, these expenditures must be subtracted from the United States'GDP, for these expenditures are not made on the United States' production.

Related questions

Where is Hawaii located and how does this affect there import and export?

hows Hawaii's location affect what it imports / exports?


What aspects of the geography affect Egypt's imports and exports?

lol idnk edmentum is stupid right?


How did giography affect the economy?

Geography has affected imports and exports, if objects are exported overseas then they are subject to different taxes.


What are the various factors which affect exchange rate?

When a country exports goods that other countries want to import, that makes their currency valuable. The balance between imports and exports affects the exchange rate. Since this is also a matter that concerns investment, people will be more likely to buy a currency based upon their confidence in the country that issues it. So a whole national economy is assessed.


What is a current issue involving foreign exchange?

A current issue involving foreign exchange is the impact of fluctuating exchange rates on international trade and investment. Fluctuations in exchange rates can affect the cost of imports and exports, making it challenging for businesses to plan and forecast their financials. Additionally, exchange rate volatility can create uncertainties for investors, affecting their decisions regarding foreign investment.


PSA Singapore contribution to Singapore GDP?

PSA controls the port. This means imports and exports can be allowed or stopped by PSA if it is shipped. GDP, which is Gross Domestic Product, is commonly calculated by the expenditure method (from wikipedia):GDP = private consumption + gross investment + government spending + (exports − imports) If PSA control part of the imports and exports, he can choose to increase or decrease them. That will affect Singapore's GDP.


How did the Holocaust affect the money in the us?

During the time of the Holocaust, we in America where in a depression. So whenever the holocaust was over Germany owed a lot of mainey to a lot of countries. And since we trade imports and exports our flow of money from those imports and exports became less and less.


How does the exchange rate affect the balance of trade?

If by that you mean what happens if one country's currency appreciates relatively to the rest of the world, then country's exports sell less (because they become more expensive for the foreigner), while its imports increase (because they are cheaper now for the domestic consumer); thus the balance of trade is decreased (because the country is spending more on imports relative to its sales of exports).


What happens if the euro rises against the dollar?

If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.


Explain what happens if the euro rises against the dollar?

If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.


What aspects of the geography affect Egypt’s imports and exports?

Liham Pangangalakal - Pormal na Liham sa Paghingi ng Pahintulot sa Pagbalik sa Klase


How does US exports and imports each affect domestic production?

The United States'exports are as much a part of the nation's production as are the expenditures of its own consumers on goods and services made in the United States. Therefore, the United States’ exports must be counted as part of GDP. On the other hand, imports, being produced in foreign countries, are part of those countries' GDPs. When Americans buy imports, these expenditures must be subtracted from the United States'GDP, for these expenditures are not made on the United States' production.