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WAEC - Commerce (2009 - No. 14)

If a country devalues its currency, there would be
reduction in imports
reduction in exports
increase in production locally
increase in local standard living

Explication

Devaluation of a country's currency reduces the cost of exporting goods and services to other countries, making the exporting country to be more competitive in the global market, which, in turn, increases the cost of importing goods into the country.

With a high cost of importation, imports will be reduced as people will be uninterested in importing goods at a high cost.

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