When the value of a currency is strong in the international market,what happens to trade?
A) Trade increases because the cost of the item is more affordable in the international market.
B) Trade decreases because the cost of the item is more expensive in the international market.
C) Trade increases because sales decrease, creating a more competitive market.
D) Trade decreases because the manufacturers limit production of the item.
E) Trade increases with a slower revenue growth.

Question

Quizplus · Accepted Answer

When the value of a currency is strong in the international market, the cost of items from the country with the strong currency becomes more expensive for other countries to import. This results in a decrease in trade as foreign buyers may choose to import cheaper goods from other countries.

When the Value of a Currency Is Strong in the International