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According to recent media reports: 'USA has accused China of currency devaluation to promote its exports'. In the light of the given media report comment, how exports can be promoted through the Currency devaluation?

Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :USA has a point of argument as devaluation of a currency encourages exports of a country. As exports goods become cheaper in the international <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> giving a competitive edge for the goods of domestic country (China). Devaluation of the value of domestic currency promotes the exports of the country and may adversely <a href="https://interviewquestions.tuteehub.com/tag/impact-1037617" style="font-weight:bold;" target="_blank" title="Click to know more about IMPACT">IMPACT</a> the production and <a href="https://interviewquestions.tuteehub.com/tag/sale-1193496" style="font-weight:bold;" target="_blank" title="Click to know more about SALE">SALE</a> of importing country (USA).</body></html>


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