Currency devaluation can boost a country's exports, but currency revaluation can increase foreign competition.

Question

Quizplus · Accepted Answer

Currency devaluation makes a country's exports cheaper and more competitive in the international market, potentially increasing demand for those goods. Conversely, currency revaluation makes a country's exports more expensive and thus less competitive, potentially decreasing demand and increasing foreign competition.

Currency Devaluation Can Boost a Country's Exports, but Currency Revaluation