SOLUTION: GB 540 University of Phoenix Impacts of Currency on Trade Discussion

Attached. Please let me know if you have any questions or need revisions.1Impacts of Currency on TradeStudent’s NameInstitution AffiliationDue DateProfessor’s NameCourse ID and Name2Impacts of Currency on TradeA trade deficit occurs when the imports of a country are more than its exports, while atrade surplus happens where a country’s exports exceed its imports. However, the trade surpluscontributes greatly to economic growth than the trade deficit because it indicates a net inflow ofdomestic currency from global markets (Bakari, (2017)). It is better positioned to create manyemployment opportunities for the people who pay taxes used by the government as revenue tocarry out development projects. Trade surplus also influences domestic currency’s value in theinternational market, making it stronger than other foreign currencies, therefore, increasingexchange rates. It increases the demand for domestic products in the international market,leading to an increase in the prices of its products in the market. The profit received from thesales is used to start new industries and improve infrastructure, leading to economic growth in acountry.Factors that influence the demand for foreign currency include the following; The rate ofinterest, a higher rate of interest attract more foreign investment, which impacts the value of thecurrency, but the demand for a currency decreases when the rate of interest is high. When therate of interest falls, the demand for currency increases. Transaction cost also determines thedemand for foreign currency. When there is a rise in transaction cost to buy or sell a stock,demand for foreign currency increases, decreasing when there is a decrease in transaction cost(Mustafakulov, (2017)). Consumer spending also determines the demand for foreign currency.An increase in consumer spending leads to an increase in demand for currency because spendingmoney directly influences currency influx. Still, a decrease in the spending on goods and servicesleads to a decrease in foreign currency demand.3Devaluation implies that there is a decrease in the value of a currency. It makes exportscheaper since it will make exports more competitive and be considered cheaper by the globalmarket, increasing demand for exports. It also makes importation of goods expensive, hencereducing the demand for imports from foreign countries, leading to lower economic growth(Nalin, (2020)). Revaluation refers to an upward adjustment of a currency value. It affects thevaluation of assets held by foreign companies in that given currency. This can even lead to lossesin the international market since goods that were initially bought at a cheaper price are sold at ahigh price that consumers may not be willing to pay.A currency war is a condition where some countries intentionally depreci…

15 Million Students Helped!

Sign up to view the full answer

Order a unique copy of this paper
(550 words)

Approximate price: $22

Our Basic features
  • Free title page and bibliography
  • Plagiarism-free guarantee
  • Unlimited revisions
  • Money-back guarantee
  • 24/7 support
Our Options
  • Writer’s samples
  • Expert Proofreading
  • Overnight delivery
  • Part-by-part delivery
  • Copies of used sources
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

AcademicWritingCompany guarantees

Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.

Money-back guarantee always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, always

Read more

Zero-plagiarism tolerance guarantee

The paper that you order at is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.

Read more

Free-revision guarantee

The thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.

Read more

Privacy and Security policy

With, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.

Read more

Adherence to requirements guarantee

The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2020 at 10:52 AM
Total price:
The price is based on these factors:
Customer Academic level
Number of pages required
Urgency of paper