oussama94
05-28-2017, 23:30
Countries that are net importers—meaning they make more international
purchases than international sales—experience what is known as a
trade deficit, which in turn has the potential to drive the value of the currency
down. In order to engage in international purchases, importers must
sell their currency to purchase that of the retailer of the good or service; accordingly,
on a large scale this could have the effect of driving the currency
down. This concept is important because it is a primary reason why many
economists say that the dollar needs to continue to fall over the next few
years to stop the United States from repeatedly hitting record high trade
deficits
purchases than international sales—experience what is known as a
trade deficit, which in turn has the potential to drive the value of the currency
down. In order to engage in international purchases, importers must
sell their currency to purchase that of the retailer of the good or service; accordingly,
on a large scale this could have the effect of driving the currency
down. This concept is important because it is a primary reason why many
economists say that the dollar needs to continue to fall over the next few
years to stop the United States from repeatedly hitting record high trade
deficits