According to trade theory:

Question

Quizplus · Accepted Answer

Trade theory does state that traders need to know the exchange rate between their own currency and that of the nation they are considering trading with before they can decide whether it is advantageous to import, export, or buy locally.

Option B is incorrect because a stronger currency can also mean that imports become cheaper, making it beneficial for a country to import more goods.

Option C is incorrect because devaluation of a currency does not automatically cause a nation's products to be price-competitive in international markets as it depends on various other factors such as the cost of production and quality of products.

Therefore, option A is the best choice.

According to Trade Theory