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What is Impact of Currency Appreciation on Exports about?

1) During currency appreciation, exporters may exit markets where foreign competition increases and domestic firms face uncertainty depending on exchange rate changes and flexibility of pricing. 2) Developing a pricing strategy requires balancing market share and profit margins depending on price elasticity of demand. 3) Firms dealing in undifferentiated products face more exchange rate risk than differentiated products.

Author

liliniek321

Language

EN