What are the advantages and disadvantages of a high or low exchange rate for a currency? Is a strong U.S. dollar always good for the U.S. and global economies? Why or why not?© BrainMass Inc. brainmass.com October 9, 2019, 7:51 pm ad1c9bdddf
The main advantage of a devalued currency is that it makes it cheaper for foreigners with foreign currencies to purchase goods manufactured in your country. As a result, this increases your trade surplus due to higher outflows of trade. The main advantage of a higher valued exchange rate is that it is more affordable to purchase goods from foreign countries, and for citizens to spend their vacation time abroad. The disadvantage of that scenario is that it ...
The solution discusses the advantages and disadvantages of a high or low exchange rate.