--%>

Influence of supply in exchange rate

If exchange rate of foreign currency downs or falls its supply too falls. Elucidate how?

Answer: If exchange rate downs or falls, experts become less gainful therefore supply of foreign currency via exports falls.

   Related Questions in International Economics

  • Q : Determinants of market market structure

    market structure and price-output determination

  • Q : LORENZ CURVE THE AREA BETWEEN THE

    THE AREA BETWEEN THE LORENZ CURVE OF A COUNTRY AND THE DIAGONAL OF PERFECT EQUALITY REPRESENT

  • Q : Gasoline market-Demand and supply

    Let us suppose that US gasoline market has the demand and supply curvesQd = 10 – 0.5PdQs = -2 + Ps when Ps ≥ 2 and Qs = 0 if Ps < 2,

    Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

  • Q : What is managed floating exchange rate

    Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.

  • Q : Components of current account of BOP

    Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers

  • 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 : Define induced investment Induced

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

  • Q : Free trade Analyse free trade and

    Analyse free trade and discuss the role of international organisattions in regulating trade between countries. How the control of trade has impacted positively or negatively on a company of your choice

  • Q : Problems suppose that an investor has

    suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%