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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.
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THE BALANCING ITEM Since for ever position entry in the current and capital accounts there is a corresponding negative entry in the monetary account, and for every negative en
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features of monopoly
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a critique of the relevance of managerial economics
State the difficulties in the measurement of profit.
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