Higher Education Presentation

Advantages of high exchange rate

By: Raffaella, Farida, Gaia

Downward pressure on inflation

01

+ INFO

If the value of the exchange rate is high, then the price of finished imported goods will be relatively low. In addition, the price of imported raw materials and components will reduce the costs of production for firms, which could lead to lower prices for consumers. The lower price of imported goods also puts pressure on domestic producers to be competitive by keeping prices low.

downward pressure on inflation

02

More imports can be bought

+ INFO

If the value of the exchange rate is high, then each unit of the currency will buy more foreign currencies, and so more foreign goods and services. This would include both visible imports, such as technology, and invisible imports, such as foreign travel.

more imports can be brought

high currency forces domestic producers to improve efficiency

03

+ INFO

The high exchange rate will threaten their international competitiveness so they will be forced to lower costs and become more efficient in order to maintain competitiveness. While this might result in the laying off of workers, there are other means of increasing efficiency that will result in greater economic productivity for the country.

High value of a currency forces domestic producers to improve their efficiency

questions?if not, bye-

Got an idea?

Use this space to add awesome interactivity. Include text, images, videos, tables, PDFs... even interactive questions!Premium tip: Get information on how your audience interacts with your creation:

• Visit the Analytics settings;
• Activate user tracking;
• Let the communication flow!

Got an idea?

Use this space to add awesome interactivity. Include text, images, videos, tables, PDFs... even interactive questions!Premium tip: Get information on how your audience interacts with your creation:

• Visit the Analytics settings;
• Activate user tracking;
• Let the communication flow!

Got an idea?

Use this space to add awesome interactivity. Include text, images, videos, tables, PDFs... even interactive questions!Premium tip: Get information on how your audience interacts with your creation:

• Visit the Analytics settings;
• Activate user tracking;
• Let the communication flow!