WAEC - Economics (2022 - No. 40)
Which of the following measures can lead to an increase in exports?
Increase in export duties
Increase in excise duties
Depreciation of currency
Total ban on imports
Vysvětlení
The economic effect is thus, depreciation of currency tends to increase a country's balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.