Question

" it is always good for a country to have a high currency value !"

do you agree with this starement ? discuss with relevant examples .

Answer 1

Yes I do agree partially, because having strong currency has its own positives and negatives.

-->For example, The dollar is considered strong when it rises in value against other currencies in the foreign exchange market. A strengthening U.S. dollar means it can buy more of a foreign currency than before. A strong dollar benefits Americans traveling overseas but puts foreign tourists visiting the U.S. at a disadvantaged position. So,A strong dollar is good for some and relatively bad for others.

-->strong currency enables cheaper imports and less expensive foreign travels. For example, Strong dollar means American consumers can be benefited from cheaper imports and less expensive foreign travel.A strong currency also benefits MNCs in the respective domestic economy.

-->However,on the other hand, strong currency makes exports costlier and can hurt domestic companies which rely on global markets for their products.