When the foreign demand for a country's goods and services increases, the demand for the foreign country's currency also increases.

Name: When the foreign demand for a country's goods and services increases, the demand for the foreign country's currency also increases.
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When the foreign demand for a country's goods and services increases, the demand for that country's currency increases, not the foreign country's currency, because buyers need the local currency to pay for those goods and services.

When the Foreign Demand for a Country's Goods and Services