Effects of fluctuations in exchange rates, Managerial Economics

Effects of Fluctuations in Exchange Rates

When a country's currency depreciates, exporting firms may have competitive advantage but businesses which rely on imports for raw materials or components will find costs rising.  This may make them less competitive on both domestic and foreign markets.

If the domestic currency appreciates then imports will become cheaper to domestic customers and exports more expensive to foreign customers.  this will result in a full demand for the businesses goods abroad and increase competition from imports in the home markets.

Posted Date: 11/30/2012 5:33:12 AM | Location : United States







Related Discussions:- Effects of fluctuations in exchange rates, Assignment Help, Ask Question on Effects of fluctuations in exchange rates, Get Answer, Expert's Help, Effects of fluctuations in exchange rates Discussions

Write discussion on Effects of fluctuations in exchange rates
Your posts are moderated
Related Questions
For the pair of supply and demand equations,where x represents the quantity demanded in units of a thousand and p the unit price in dollars, find the equilibrium quantity and the e

It indicates the amount of output by that long run output of the firm under monopolistic competition falls short of the Ideal output. This is regarded as wastage in monopolistic co


Real Rigidities The New Keynesian economists  rely both on nominal and real rigidities to  arrive at their conclusion that nominal changes in money  supply have real, and not

what are the Sources of public debt

NON-ACCELERATING INFLATION RATE OF UNEMPLOYMENT   During 1970s economists encountered a puzzle  in  the sense that  inflation and unemployment  data  did not  fit  into the Phi

Suppose that the price elasticity of demand for cereal is -0.75 and the cross-price elasticity of demand between cereal and the price of milk is -0.9. If the price of milk rises by

Determine the Managerial economics techniques Though the most frequent applications of these techniques are as below:  Risk analysis: Numerous models are used to quantif

Ajax has the following short run cost curve when tc=800000-5000Q+100Q2

how realistic is the sales maximization model from experience with business objectives as pursued by Zimbabwean firms