Question

Many MNC's have recently shifted rgeir investment from China to India.It has encouraged Make In India plans of the government.
Discuss the effects of the given statement on foreign exchange rate with reference to the Indian economy

Answer 1

Answer:

Investments by large multinational corporations (MNCs) in India will ensure greater inflow of foreign exchange, leading to an increase in the supply of foreign currency. This situation may result into excess supply of foreign currency in the economy at the prevailing foreign echange rate. <br> As a result, a new euilibrium rate of foreign exchange will be determined which will be lower than the prevailing foreign exchange rate, leading to appreciation of domestic currency

Answer 2

Answer:

it's too long but I'll try to answer this