how does giving incentives for exports influence foreign exchange rate.explain?
Answers
Answered by
9
If the government gives more incentives to exports then the residents of other countries( say of UK) will have to first acquire Indian currency in order to pay for the goods imported from India.This will increase the demand for Indian currency in the international market and as a result,the value of Indian currency will go up.
Hope that's what you asked for. :)
Hope that's what you asked for. :)
Anonymous:
nice answer
Nice answer
Similar questions