Imports impact the economy in several aspects. For example, at the micro level, imports affect competition by increasing supply in the domestic
Availability is a factor affecting imports. We import goods from abroad because they are unavailable in the domestic market. For example, the domestic
Exchange rates affect aggregate demand through their effects on exports and imports. Specifically, it affects the relative prices of imported or
What's it: The real exchange rate is the price of one currency against another currency adjusted for differences in the price levels of domestic
What's it: Purchasing power parity (PPP) is an economic concept for equalizing the price of a set of identical items across different locations.
What's it: Currency appreciation is when the exchange rate of one currency against another currency increases. One unit of currency can buy more
What's it: Currency refers to the money accepted and used as legal tender in a country. It includes banknotes and coins you use daily. The
What's it: A currency crisis is a situation in which the exchange rate of a currency falls, causing a sharp decline in foreign reserves. The fall
Exchange rate represents the price of one currency when we exchange to another currency. For example, the current exchange rate of Rp/USD is 14,000.
What's it: Export means sending domestic goods and services to foreign markets for sale. As compensation, we get foreign currency as payment, say
Currency depreciation is a decrease in the purchasing power of domestic currency against other currencies. Currency depreciation has considerable