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Whats the impact of exchange rate changes on the trade in goods and services?

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Whats the impact of exchange rate changes on the trade in goods and services?

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  1. They make the products more or less expensive in the importiung nation in terms of the producing nations currency.

    If I can make product X for $1 us, and sell it in Japan for 100 yen, then I make a profit only so long as 100 Yen exchanges at more than $1 US. If the exchange rate worsens, I make less or even need to stop exporting to Japan, if the exchange rate improves, I make more money!

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