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Sebastian Allen
22 December, 20:11
How dose currency effect trade?
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Trent Carpenter
22 December, 20:45
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The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.
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