When a country has a weak currency relative to other nations, imports are ________ relative to domestic products.

Question

Quizplus · Accepted Answer

When a country has a weak currency, it means that its currency can buy fewer units of other currencies. Therefore, imports from other nations become more expensive compared to domestic products. This is because it cost more of the local currency to buy the same amount of foreign currency needed to purchase imported products.

When a Country Has a Weak Currency Relative to Other