Evaluate the impact the announcement

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Some countries encourage movements in their exchange rate relative to those of some other country as a short-term means of addressing foreign trade imbalances.

For the following scenarios, evaluate the impact the announcement would have on an American importer and an American exporter doing business with the foreign country:

The Brazilian government announces that it will print billions of new reais and inject them into the economy in an effort to reduce the country's unemployment rate. (increase money supply, increase inflation and the value of reais will go down)

Reference no: EM132955362

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