Although Sinthland is a manufacturing-dependent nation, it prefers to have an overvalued currency. Which of the following is most likely a reason why Sinthland would want an overvalued domestic currency?

A) To make domestic production more appealing for foreign trade
B) To boost domestic manufacturing sectors
C) To increase the buying costs of foreign goods
D) To make imports cheaper

Overvalued Currency

A currency that is traded at a price higher than its intrinsic value, often due to government intervention or speculative demand.

Manufacturing-Dependent

Describes economies or regions that primarily rely on the manufacturing sector for economic growth and employment.

Domestic Production

Goods and services produced within a country’s borders, contributing to its gross domestic production (GDP).