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When an Exchange rate of one nation’s currency decreases against the other, the exports of that country will increase and Imports decrease and Vise versa. For Example if the Dollar Depreciate against major world currencies then the U.S. Exports will then Increase and Imports will Decrease, leading to a Current Account Surplus.
4. What we found from the first two findings state is the U.S. Overall Current Account Deficit does not match the U.S.-JAP X-Rate. Since 1995 the Deficit has increased constantly but the Japan X-rate has been up and down, and doesn’t match with the relationship explained in part three...
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Common topics in this essay:
- Just A Dollar
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