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UNIT 7- Foreign Exchange Market

Foreign Exchange - buying and selling of currency

Appreciation: strong dollar
            (dollar buys more of another currency and results in less expensive imports and more
            expensive exports)
            leads to trade deficits
            Import will increase b/c they are cheaper

Depreciation: weak dollar
-dollar buys less of another country
-results in ,more expensive imports and less expensive exports
-leads to trade surplus
*currency is rather weak




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