Question:

How does the value of a country’s currency affect the relative price of its goods on the global market?

by Guest10655  |  earlier

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And why would a country want it currency to be undervalued? Thanks!

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  1. The lower the value, the cheaper a country's exports are to other countries, and the more expensive imports are to that country.  A country would want an undervalued currency to stimulate export growth and encourage domestic production by making imports expensive.

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