An increase in the quantity of exports sent overseas and increased revenue for a business could be the result of:YOUR ANSWERYour Answera free trade agreement is canned.a downturn in the global economy.an appreciation of the exchange rate.a depreciation of the exchange rate.
Question
An increase in the quantity of exports sent overseas and increased revenue for a business could be the result of:YOUR ANSWERYour Answera free trade agreement is canned.a downturn in the global economy.an appreciation of the exchange rate.a depreciation of the exchange rate.
Solution
An increase in the quantity of exports sent overseas and increased revenue for a business could be the result of:
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A free trade agreement: This could lead to an increase in exports as it removes trade barriers such as tariffs, quotas, and subsidies. This makes it easier and cheaper for businesses to export their goods and services to other countries, leading to an increase in the quantity of exports and potentially increased revenue.
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A depreciation of the exchange rate: When the value of a country's currency decreases relative to other currencies (a depreciation), this makes the country's exports cheaper for foreign buyers. This can lead to an increase in the quantity of exports, as foreign buyers take advantage of the lower prices, and can also increase revenue for businesses as they sell more goods and services overseas.
On the other hand, a downturn in the global economy or an appreciation of the exchange rate could potentially lead to a decrease in the quantity of exports and reduced revenue for businesses. A downturn in the global economy could reduce demand for exports, while an appreciation of the exchange rate could make a country's exports more expensive for foreign buyers, potentially reducing the quantity of exports.
Similar Questions
n increase in the quantity of goods and services imported that results in a local business facing greater competition could be the result of:YOUR ANSWERYour Answeran appreciation of the exchange rate.a downturn in the global economy.a depreciation of the exchange rate.government placing a tariff on imported goods.
Analyse why a country’s exports may decrease.
A real appreciation will tend to causeGroup of answer choicesan increase in exports.a decrease in imports.an increase in net exports.a reduction in demand for domestic goods.
What is meant by the phrase "free trade"?A.That there are no shipping costs within those countriesB.That international business is not limited by tariffs or quotasC.That products traded between those countries are at no chargeD.That companies are expected to make less profit
A country has a trade surplus of $20 billion with its trading partners over a year. Which change would cause the country to have a trade deficit the following year, assuming everything else remains the same?A.The country decreases its exports by $30 billion.B.The country increases its imports by $10 billion.C.The country decreases its imports by $10 billion.D.The country increases its exports by $30 billion.
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