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Unformatted text preview: Americans; while goods and services from the U.S. will become more expensive for foreigners causing imports to rise and exports to decline; a weak dollar causes the reverse scenario. More expensive imported goods and services decrease imports while cheaper American goods and service’s increase exports. The trade balance of any country is largely determined by the value of the domestic currency in relation to other currencies. When the foreign exchange rate of currency changes it takes at least several months before it has any effect on the volume of imports and exports. Question two: No I have not had the pleasure of experiencing any of these exchange rates and do not think I would want to. ******Graph of the GBP/USD exchange rate from late 2006 to April 2011****** Reference N.A., webpage, http://www.thismatters.com...
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This note was uploaded on 11/01/2011 for the course ECON 220 taught by Professor Dr.leo during the Spring '10 term at AIU Online.
- Spring '10