If the US dollar devalues will imports decrease or increase same goes for exports?

Question

If the US dollar devalues will imports decrease or increase same goes for exports?

Answer 1

Answer = decrease.

If the US dollar decreased in value, then it would take more US dollars to but foreign goods.  As the foreign goods become more expensive Americans will not want to spend more dollars to buy imports.  The result is that imports will decrease.  As dollars decline in value, the foreign money will buy more US products and US exports will increase.  It is a see-saw back-and-forth effect.

Answer 2

Imports decrease, exports increase. US purchasing power goes down as the currency loses value, while it becomes cheaper for others to buy our goods because their currency is worth more relative to ours.

Answer 3

Imports will decrease and exports will increase.

The goods made in the U.S. will be cheaper and more affordable for other countries b/c of the better exchange rate for them. Imports will decrease b/c products made in other countries will become more expensive.

If 1 dollar = 100 monopoly bills, then suddenly 1 dollar = 1 monopoly bills. Then suddenly everything made in Monopoly land cost 100 times as much. And for Monopoly land people, everyone become 100 times cheaper. Imports will decrease from Monopoly land and exports to Monopoly land will be cheaper.

Hope this helps!

Answer 4

After many years of studying Economics, I enjoy questions like this, nice and easy. lol

Well if the american curreny devalues, this will increase the amount of Exports as foreign countries can afford more of a particular good at a lower price. as they are getting more dollars in the Exchange rate.  

If the American Dollar increase in value, the amount of exports would decrease and the amount of imports would increase as the americans can afford more things for the dollar, allowing them to import more.

Hope this helps!!!

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