In the short run a currency depreciation can make a trade balance worse if
A)there is no domestic producer of an import.
B)there is no domestic buyer for an import.
C)there is no export market for a country's output.

Question

Quizplus · Accepted Answer

In the short run, if there is no domestic producer of an import, the country will continue to import the same quantity despite the depreciation, potentially worsening the trade balance as imports become more expensive.

In the Short Run a Currency Depreciation Can Make a Trade