Currancy appreciation affect exporters. international economics?

Question

Outline some challenges that exist for clothing companies today operating in the global market bases on currancy . And can someone explain why its bad for an exporting company when there currancy appreciates?

Answer 1

when the currency appreciates it's a good thing because it indicates that the country's economy is getting better however, it also means that the currency has become more expensive for other countries and so exports decrease because goods from the country whose currency appreciated become more expensive.

For example let's say the US imports cotton from Egypt. At first the exchange rate was 1 USD= 5 EGP but then the Egyptian pound appreciates and it becomes 1USD= 2EGP..the same amount of cotton that the US used to import from Egypt at the old exchange rate would cost them more now and they may find another country where they could get it for less and so Egypt may not be bale to export as much as they used to after the currency appreciates.