General Knowledge - Indian Economy - Discussion
Discussion Forum : Indian Economy - Indian Economy (Q.No. 43)
43.
Devaluation of currency will be more beneficial if
Discussion:
22 comments Page 2 of 3.
SATYAM said:
6 years ago
=> 1st case [1 $ = 70 Rs.]
1 pen price = 70 Rs. = 1 dollar, sold for 1.2 $ => profit =0.2 $.
=> 2nd case [1 $ = 100 Rs.]
1 pen price = 70 Rs. = 0.7 $, sold for 1.2 $ => profit =0.5$.
=> More profit when the price of exports remains constant.
1 pen price = 70 Rs. = 1 dollar, sold for 1.2 $ => profit =0.2 $.
=> 2nd case [1 $ = 100 Rs.]
1 pen price = 70 Rs. = 0.7 $, sold for 1.2 $ => profit =0.5$.
=> More profit when the price of exports remains constant.
Arun said:
1 decade ago
For example. If value of rupee is devaluated against dollar, then in the angle of american importers the price of goods will be increased. Right? I m not sure about my view. Some one help me out. How comes price of export remains constant?
Raj said:
9 years ago
Hence devaluation is beneficial for export-oriented countries. So it will be more beneficial if the export price of a commodity reduces in comparison to other countries as this will reduce the price of a commodity in the foriegn market.
Manisha khetwal said:
1 decade ago
Devaluation means price of rupees reduced it must help when export increase. This means that other countries will purchase more and more commodity and this will automatically tend to increase in economy.
Varun said:
1 decade ago
Only IT companies will get benefit by devaluation, whereas other sectors will not, so how come it is profitable for a country?
As we are top importers of petrol and gold.
As we are top importers of petrol and gold.
Krishna said:
7 years ago
Devaluation of a currency is more successful price elasticity demand is proportional then only devaluation of a currency will success other wise it will fail.
Madhav somvamnshi said:
1 decade ago
Central government has devaluation of Indian currency in 1948, 1966 and 1991 The main reason is to increase export of goods.
Alka said:
1 decade ago
Devaluation means price of rupees reduced in comparison of other currency it is beneficial when export increased.
He man said:
9 years ago
Because of devaluation, the import prices will increase and the export price will become lower.
Anand said:
1 decade ago
By doing devaluation Forex reserves may rise as export price remains constant.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers