For the price competitiveness of exports, an increase of the exchange rate makes exports to this country become more competitive due to cheaper prices, reverse if the currency exchange rate rose News reduced price makes exports become relatively expensive, price competitiveness is reduced. In the same market if the quality of consumer goods, the same general trend, consumers will use the product cheaper. And suppose, the cost of production in the country code of the same coin is equal, the country has a reduction rate their currencies versus the local currency price of larger markets, the competitiveness of Higher prices of that country, that country has the opportunity to develop more exports.
In short, the currency fell to benefit exports, local currency price increases, which would otherwise be detrimental. The trend is almost true for the national enforcement regime of floating exchange rates or managed float, where the nominal exchange rate or closer monitoring of real value, even for countries according to the exchange rate regime fixed, the increase or decrease rate is increased or decreased rates ngia list. Therefore if an increased exchange rate and still make a lower nominal exchange rate real exchange rate of the domestic currency is still considered a higher valuation of real value, the effect of promoting the export will not much.
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