Asked by Breanna Beaver on Jun 19, 2024
Verified
National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.
National Governments
The central governing bodies of a nation that are responsible for creating and enforcing laws, policies, and regulations, and managing the country's affairs.
Devalue Currencies
The intentional decrease in the value of a country's currency compared to other currencies, typically conducted by the government or central bank to adjust the country's trade balance.
Foreign Investment
Capital investment made by one country into another, either by buying a company in the target country or by expanding operations of an existing business.
- Understand the strategies national governments use to influence their currency strength and exports.
Verified Answer
AG
Anthony GreenJun 19, 2024
Final Answer :
True
Explanation :
By devaluing their currency, a country can make its exports cheaper and more competitive in the global market, which can increase demand for its goods abroad. Additionally, a weaker currency can attract foreign investors looking for higher returns on investments in the country's assets.
Learning Objectives
- Understand the strategies national governments use to influence their currency strength and exports.