Saved Bookmarks
| 1. |
An American company has ordered readymade garments from an Indian company. What will be the impact on their total import expenditure of the American company as increase in the foreing exchange rate ? |
| Answer» SOLUTION :It will reduce the totalimport EXPENDITURE of the American COMPANY as increase in the foreign exchangerate will raise the purchasing power of the company. It MEANS, with same amount of dollars, more goods can be purchased from India. | |