What is likely to happen to country as volume of import

Reference no: EM133713072

Problem

Suppose a country A engages in international trade with country B. Suppose further there is a fall in the free-market exchange rate of the domestic currency of country A.

1. What is likely to happen to country A' s volume of import and why?
2. What is likely to happen to country A' s volume of export, and why?
3. What is likely to happen to the competitiveness of country A' s import-competing industries and why?
4. What do you predict will happen to the general price level of country A, and why?

Reference no: EM133713072

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