If the dollar increases in value against your INR(It takes more foreign currency to buy one dollar, or said another way, it takes less dollar to buy one unit of foreign currency) will it make US exports to your research country more or less attractive to residents of your research country (assume for questions 3 and 4 that all else is held constant)? Why? will it make US imports from your research country more or less expensive to US residents? Why?
If the dollar increases in value against your INR(It takes more foreign currency to buy one dollar, or said another way, it takes less dollar to buy one unit of foreign currency) will it make US exports to your research country more or less attractive to residents of your research country (assume for questions 3 and 4 that all else is held constant)? Why? will it make US imports from your research country more or less expensive to US residents? Why?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter15: International Trade And Finance
Section: Chapter Questions
Problem 6SQ
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If the dollar increases in value against your INR(It takes more foreign currency to buy one dollar, or said another way, it takes less dollar to buy one unit of foreign currency) will it make US exports to your research country more or less attractive to residents of your research country (assume for questions 3 and 4 that all else is held constant)? Why? will it make US imports from your research country more or less expensive to US residents? Why?
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