reply to the two posts below
post 1: Currency appreciation is generally good news for a country’s consumers. This is due to the fact that when a country’s currency appreciates, imports into that country become cheaper. This means that consumers pay less money for those imported goods and services. Many of our goods in the U.S. come from other countries, such as China, so many products would be sold at a lower price for the consumers. One example would be that if U.S.D. experienced an appreciation, scooters imported from China could be sold at a lower price, which is great for a family looking to purchase a scooter for their child. As for if an appreciation of currency is good for a country’s businesses, it is generally bad news. This is because when a country’s currency appreciates, businesses exporting goods and services to different countries get a lower amount of domestic currency in return, making exports less profitable. One example would be that when the U.S.D. appreciates, American businesses would not be making as much money shipping exports such as vehicles to China.
Post 2: When a country’s currency appreciates, it is generally good news for that country’s consumers. This is because the consumers have to pay less money for purchasing imported services and goods. When a country’s currency appreciates, imports become cheaper for that country. An example would be that when the U.S. Dollar appreciates in terms of Argentine pesos, consumers would be paying a lower amount for goods imported in from Argentina.
Businesses who are importing in raw material from other countries pay less due to an increase in the value of domestic currency. When a country’s currency appreciates, it is generally bad news for that country’s businesses. Businesses that export goods and services to other counties receive a lowered amount of domestic currency due to appreciation of their own currency. When the country’s currency appreciates, exports become less profitable. An example would be that when the New Taiwan Dollar appreciates, Taiwanese businesses would be earning less USD by exporting goods to the USA.
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