Even in a world with floating exchange rates, states have some ability to control the value of their currency. What is an advantage of having a weak currency?
A)Exporting industries benefit from a weak currency as their goods are cheaper for foreigners to purchase.
B)Traveling citizens benefit from a weak currency as they can purchase more goods abroad.
C)Consumers benefit from a weak currency as they can afford to buy more imports.
D)There are no advantages to a weak currency.

Question

Quizplus · Accepted Answer

A weak currency makes a country's exports cheaper and more competitive in the global market, which can benefit exporting industries by potentially increasing their sales and revenues.

Even in a World with Floating Exchange Rates, States Have