4. Discuss the consequence for an economy if its currency gaining
strength [5] or What are the benefits of appreciation of currency?
The following are the
consequence of the appreciation of currency.
Ø Effect on import
The value of currency appreciated,
means they are able to buy more commodities from abroad at less price. It is a
blessing to countries importing more petrol, food items etc.
Ø Loss to the exporters.
Appreciation of currency reduces the
export. After the appreciation of the currency foreigners have to pay more
money. So exporters may lose the foreign market.
Ø Capital movement
Appreciation of currency reduces the
import price. So industries can import capital at less cost. More over
industries can obtain raw materials cheaply. This improves production.
Ø Infant industries.
Appreciation increases the import and
this badly affects the new and small industries. Most of the infant industries
are unable to compete with their foreign rivals. So appreciation of currency
may destroy the domestic industries.
Ø Unemployment
Appreciation may increase the import
price .Cheap availability of imported goods will reduce the internal demand.
This will compel the producers to reduce production. So appreciation of
currency is one of the reasons for unemployment.
Ø Balance of payment and full employment aim
Appreciation of currency may provide
cheap imported goods. Increase in import will make deficit in balance of
payment. More import from outside will make inefficient production. So
appreciation will not satisfy the government full employment aim.
I use basically superior fabrics : you will discover these products by: currency converters
ReplyDeleteTESTIMONY ON HOW I GOT MY LOAN AMOUNT FROM A RELIABLE AND TRUSTED LOAN COMPANY LAST WEEK. Email for immediate response drbenjaminfinance@gmail.com
ReplyDeleteHello everyone, My name is Mrs. Carolin Glowski, I'm from Europe, am here to testify of how i got my loan from BENJAMIN LOAN FINANCE after i applied Two times from various loan lenders who claimed to be lenders right here this forum, i thought their lending where real and i applied but they never gave me loan until a friend of mine introduce me to {Dr. Benjamin Scarlet Owen} the C.E.O of BENJAMIN LOAN FINANCE who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met {Dr. Benjamin Scarlet Owen} who really helped me with my loan and changed my life for the better. I don't know if you are in need of an urgent loan also, So feel free to contact Dr. Benjamin Scarlet Owen on his email address drbenjaminfinance@gmail.com
Hello Everyone,
ReplyDeleteWelcome to the future! Financing made easy with Prof. Mrs. DOROTHY LOAN INVESTMENTS
Have you been looking for financing options for your new business plans, Are you seeking for a loan to expand your existing business, Do you find yourself in a bit of trouble with unpaid bills and you don’t know which way to go or where to turn to? Have you been turned down by your banks? MRS. DOROTHY LOAN INVESTMENTS says YES when your banks say NO. Contact us as we offer financial services at a low and affordable interest rate of 2% for long and short term loans. Interested applicants should contact us for further loan acquisition procedures via profdorothyinvestments@gmail.com
Services rendered include:
* Refinancing Loans
* Car Loan
* Truck Loans
* COVID-19 Financing Loan
* Home Loan
* Mortgage Loan
* Debt Consolidation Loan
* Farm Loan
* Business Loan [secure and unsecured]
* Personal Loan [secure and unsecured]
* Students Loan and so many others.
For more info; Contact us via Email: profdorothyinvestments@gmail.com
With Prof. Mrs. DOROTHY LOAN INVESTMENTS. you can say goodbye to all your financial crisis and difficulties as we are certified, trustworthy, reliable, efficient, fast and dynamic
BUSINESS LOAN PERSONAL LOAN HERE APPLY NOW WhatsApp +918929509036 financialserviceoffer876@gmail.com Dr. James Eric
ReplyDelete