Economic conditions would impact trade flows

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Consider a terrorist attack on a country, such as the Paris, France attack on November 13, 2015. In many cases, such an attack is expected to weaken economic conditions and reduce local interest rates. Predict how the weaker economic conditions would impact trade flows. All else equal, how would the change in trade flows impact the value of the national currency? All else equal, how would the lower local interest rate impact the value of the national currency?

Reference no: EM13998427

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