- This topic has 5 replies, 2 voices, and was last updated 11 years ago by
.
-
Posts
-
Dear F9 tutor,
Kindly ask You, to explain with numerical examples this relationship. I have tried to remeber it, but I think I will be confused during exam, if I do not understand the logic.A lower exchange rate A higher exchange rate
-Domestic goods are cheaper in – Domestic goods are more expensive in
foreign markets so demand for foreign markets so demand for exports falls.
exports increases. -Foreign goods are cheaper so demand for
-Foreign goods are more expensive so imports rises.
demand for imports falls.Thank you in advance.
Best regards. Lilit.I don’t see how I can give you numerical examples (and you would not be asked for any).
I would not spend too much time on it – there is unlikely to be much (if anything) on this in the exam.
- You must be logged in to reply to this topic.