Question

How exporter effect the market

Answer 1

The balance of trade influences currency exchange rates through itseffect on the supply and demand for foreign exchange. ... In contrast, if a country imports more than it exports, there is relatively less demand for its currency, so prices should decline. In the case of currency, it depreciates or loses value

Answer 2

A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation and demand