According to Trade Theory

According to trade theory

A) traders need to know the exchange rate between their own currency and that of the nation they are considering trading with, before they can decide whether it is advantageous to import, export, or buy locally.
B) if a currency's exchange rate strengthens, then its exporters will no longer be able to profitably export their products.
C) devaluation of a currency will automatically cause a nation's products to be price competitive in international markets.
D) high-cost labor will automatically cause a country to be uncompetitive in export markets.
E) devaluation of a country's currency will cause domestic prices to decrease.