oussama94
05-28-2017, 23:29
Trade flows are the basis of all international transactions. Just as the investment
environment of a given economy is a prime determinant of its
currency valuation, trade flows represent a country’s net trade balance.
Countries that are net exporters—meaning they export more to international
clients than they import from international producers—will experience
a net trade surplus. Countries that are net exporters are more likelyto have their currency rise in value, since from the perspective of international
trade, their currency is being bought more than it is sold: international
clients interested in buying the exported product/service must first
buy the appropriate currency, thus creating demand for the currency of the
exporter.
environment of a given economy is a prime determinant of its
currency valuation, trade flows represent a country’s net trade balance.
Countries that are net exporters—meaning they export more to international
clients than they import from international producers—will experience
a net trade surplus. Countries that are net exporters are more likelyto have their currency rise in value, since from the perspective of international
trade, their currency is being bought more than it is sold: international
clients interested in buying the exported product/service must first
buy the appropriate currency, thus creating demand for the currency of the
exporter.