When a country's currency is weak, the price of its ________.

Question

Quizplus · Accepted Answer

When a country's currency is weak, the price of its exports on world markets declines because foreign buyers will have to pay more of their own currency to purchase the same amount of goods from the weaker-currency country. At the same time, the price of imports into that country increases because the domestic currency is worth less relative to other currencies, making foreign goods more expensive.

When a Country's Currency Is Weak, the Price of Its