Question

Explain how a rise in currency value would affect a country’s ability to import and export goods.

Answer 1

Sample Response: The best time to buy an imported good, such as machinery manufactured in Canada, is when you can buy the most Canadian dollars for your US dollars. According to the chart, rates were most favorable in March 2013. At that time, $1 could buy about 1.03 Canadian dollars.

Answer 2

If a country experiences a rise in value, it will trade at a higher exchange rate. This rise in value will cause the prices of exports to increase, so other countries may be less willing to buy these goods. At the same time, the rise in value will make it easier and cheaper to import goods.


at least that is what is on edguenity.