General Knowledge - Indian Economy - Discussion
Discussion Forum : Indian Economy - Indian Economy (Q.No. 69)
69.
Devaluation of currency leads to
Discussion:
12 comments Page 1 of 2.
Rosy said:
3 years ago
The devaluation of a currency boosts exports, it stimulates businesses to supply more goods to foreign countries than to the domestic market, the low supply and high demand for the goods ultimately push the price up.
(1)
Rakesh said:
1 decade ago
I am not sure about my answer but i think devaluation of currency makes our goods competitive in international market and it encourages exporter to export a lot. Hence goods will be send in greater amount for export (out of country) and it will create scarcity in domestic market and hence prices will increase.
Manoj said:
1 decade ago
How devaluation of currency increase the domestic prices.
Garima Jain said:
1 decade ago
Depreciation in currency makes export cheaper so there is more and more export and less import as currency of our nation depreciated so we have to pay more for importing goods and services. So prices in domestic markets ultimately increases.
Nawaz said:
1 decade ago
Devalvation means lowering the value of money against foriegn currency, so it leads to increase in domestic prices.
Kousani said:
1 decade ago
Devaluation of currency causes increase in price of imported goods (petroleum, chemicals, capital goods, machineries etc. ) automatically leading to increase production cost. Hence it leads to price increase for domestic goods.
Naina said:
1 decade ago
I think devaluation of currency would lead to fall in domestic prices because exports would increase only when domestic prices are lower then the foreign prices, so if we see exports to be increasing as a result of devaluation then necessarily domestic prices should fall in comparison to external prices.
Harjot said:
1 decade ago
What is the difference between depreciation and devaluation?
Dr.Kulvinder Kaur said:
9 years ago
Devaluation occurs due to the deliberate effort of the govt.
Kulvinder kaur said:
9 years ago
Depreciation occurs due to the market forces.
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