--%>

Influence of demand in exchange rate

If exchange rate of foreign currency downs or falls, its demand rises. Describe how?

Answer: If exchange rate falls, an import become cheaper, demand for imports increases and therefore increases the demand of foreign exchange to buy more imports.

   Related Questions in International Economics

  • Q : State the two sources of demand of

    State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.

  • Q : International trade product life cycle

    I NEED TO UNDERSTAND MORE ABOUT PRODUCTION POSSIBILITY FRONTIER

  • Q : Economics Hi Can you give estimate for

    Hi Can you give estimate for this assignment please look at attachment page no for questions, book for case studies as in pdf. Assignment2: Page no 52 Assignment3:Case Analysis 74 Assignment4:Case analysis-98 Mini-99 Assignment5: Case analysis-122 Assignment6:Paper-126-127 Most the infor

  • Q : Problem regarding Comparative advantage

    Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency

  • Q : Who rediscovered Bachelier’s thesis Who

    Who rediscovered Bachelier’s thesis?

  • Q : Problem on completely employed economy

    In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.

  • Q : Describe the meaning of deficit in BOP

    Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.

  • Q : Describe balance of payment Accounts

    Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.

  • Q : Define induced investment Induced

    Induced investment: It is a type of investment that is of profit motive in nature.

  • Q : Key challenges to india's economic

    Identify the key challenges to india's economic development. To what extent the second generation reforms will tackle the current challenges of india's development