When a country's exchange rate falls,that country's exports become less expensive to other countries.

Question

Quizplus · Accepted Answer

When a country's exchange rate falls, its currency is devalued in comparison with the currencies of other countries. This means that its exports become less expensive in those other countries, because the exchange rate of the importing country has remained constant in comparison. This can lead to an increase in demand for the country's goods and services, as they are now relatively cheaper for foreign buyers.

When a Country's Exchange Rate Falls,that Country's Exports Become Less