Exchange rate changes on a country s import and export trade Thank you

Changes in exchange rates can affect a country's imports and exports** by causing changes in imports and exports**. The depreciation of a country's currency is conducive to increasing the country's exports and discouraging imports. On the contrary, if a country's currency appreciates externally, it is conducive to imports and not to exports; Exchange rate changes affect non-** payments as much as they do on ** balances.

At present, the increase in the exchange rate of the renminbi against the US dollar means that the renminbi appreciates, and if the renminbi appreciates, it is good for imports and domestic consumers, but it is not good for exports. For example, if the domestic price of a product is 80 yuan (RMB), and the exchange rate of RMB against the US dollar is 1:8, if other factors are not considered, the price of the product will be 10 US dollars when it goes to the United States.

After the appreciation of the RMB, with the same RMB as before, you can exchange more US dollars, or the above goods, domestic 80, due to the exchange rate, the price in the United States is 10, now the RMB has appreciated, more US dollars can be exchanged, so that the price in the United States is more than 10 yuan, expensive, consumers' desire to consume may be low.

1. The decrease in the exchange rate of the local currency, that is, the depreciation of the ratio of the local currency to the foreign currency, can play a role in promoting exports and inhibiting imports;

3. The reduction of the exchange rate of the local currency, that is, the depreciation of the ratio of the local currency to the outside world, can play a role in promoting exports and inhibiting imports;

4. If the exchange rate of the local currency rises, that is, the ratio of the local currency to the outside world rises, it is conducive to imports and not conducive to exports.

The exchange rate refers to the ratio or comparison of one country's currency to another country's currency, or the ** of another country's currency expressed in one country's currency. Exchange rate changes have a direct regulating effect on a country's imports and exports**. Under certain conditions, by depreciating the national currency externally, that is, letting the exchange rate fall, it will play a role in promoting exports and restricting imports; On the contrary, the appreciation of the national currency to the outside world, that is, the exchange rate rises, which plays a role in restricting exports and increasing imports.

Import and export refers to a series of specific businesses that buy and sell commodities, including labor services, technology, etc., through the conclusion of contracts with foreign parties.

Extended Materials. Balance of payments.

Balance is conducive to imports and exports**, and is conducive to maintaining a stable exchange rate.

However, in the current situation, it is impossible for any country to maintain a balance of payments. If income exceeds expenditure, i.e., international income increases, i.e., there is a surplus.

It will lead to the exchange rate **, the appreciation of the yuan.

A strong exchange rate is not good for exports, but good for imports. If international expenditures exceed income, there is a deficit.

This will lead to a depreciation of the RMB exchange rate, which is beneficial to exports and not to imports.

1. The exchange rate system, also known as the exchange rate arrangement, is a system commonly used by countries to determine the exchange rate between their own currency and other currencies. It is a system of regulations made by various countries or the international community on the principles, methods, methods and institutions for determining, maintaining, adjusting and managing exchange rates.

The exchange rate regime has a significant impact on the determination of exchange rates in countries.

2. Import and export are produced and developed under certain historical conditions. There are two basic conditions for the formation of import and export **:

The first is social productivity.

development leads to the emergence of a surplus product available for exchange;

The second is the formation of the state. The development of the productive forces of society produces surplus commodities for exchange, and the exchange of these surplus commodities between countries gives rise to international imports and exports**.

The exchange rate will cause fluctuations in import and export goods**.

Changes in the exchange rate can cause fluctuations in imports and exports**, which in turn affect a country's imports and exports**. If a country's currency exchange rate** or the country's currency depreciates, the country's pure goods are cheaper in foreign currency than before, thereby enhancing the international competition of domestic goods and facilitating exports: at the same time, the country's imported goods are more expensive in their own currency than before, which to a certain extent inhibits the country's demand for imported goods, thus playing a role in restricting imports.

The opposite of the above can occur if the exchange rate of a country's currency rises or if the country's currency appreciates. The impact of exchange rate changes on imports and exports** is constrained by the elasticity of supply and demand of imported and exported commodities, and there is a time lag problem.

Effect of exchange rates:

1. Prices. From the perspective of imported consumer goods and raw materials, the decline in the exchange rate of eggplant pants and cherry blossoms will cause the **** of imported goods in the country. The extent to which it affects the general price index depends on the share of imported goods and raw materials in GDP.

On the contrary, all other things being equal, the ** of imports is likely to decrease, and the extent to which it affects the general price index depends on the share of imported goods and raw materials in the gross national product.

2. Capital flow.

Short-term capital flows are often greatly affected by the rate of exchange and fibrillation. When there is a trend of depreciation of the local currency, domestic investors and foreign investors are reluctant to hold various financial assets denominated in the local currency, and will convert them into foreign exchange, resulting in capital outflow. At the same time, due to the conversion of foreign exchange, the shortage of foreign exchange will be exacerbated, which will promote the further exchange rate of the local currency.

On the contrary, when there is a trend of foreign appreciation of the local currency, domestic investors and foreign investors will strive to hold various financial assets denominated in the local currency, which will trigger capital inflow. At the same time, the oversupply of foreign exchange will lead to a further rise in the exchange rate of the local currency due to the conversion of foreign exchange into the local currency. <>