currency depreciation?
[2008-10-06 11:22:55]

Q: do we use abroad currency to pay for imports? for example, if London is importing goods from the US, does London use US dollars to pay for them? or can they honourable pay in pounds?

if pound depreciate against

A: Most companies will pay in the currency of the rural area they are purchasing from. So the UK will pay a U.S. firm U.S. dollars and vice versa. But a purchase can be made with anything that the selling plc holds in value.

The main reason for purchasing with

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Economics »

Currency Depreciation?
[2009-04-26 12:57:18]

using the grasp of exchange rates and trade, tell who gains and who loses from depreciation of the dollar. interpret how this will affect our balance of trade, the current account balance, aggregrate enquire, adn U.S real


If the dollar depreciates, unconnected goods would be more costly to US citizens, and US goods would be cheaper to foreign citizens. Also, investments held in US dollars would be significance less internationally, and those held in foreign currency would be worth more in



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Economics »

why do economics textbooks claim that currency depreciation increase a country's exports? Is this always true?
[2007-05-02 15:52:38]

I am a hardly bit skeptical about this theory. If a currency becomes cheaper it is often because foreign countries are buying less merchandise. So why would exports increase when the reason the currency went down is often


Currencies can become cheaper because of changes in interest rates, changes in how inviting investment is in a nation....really for any number of things.

Net exports will extension because domestic goods are artificially cheaper abroad;...

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