Countries Occasionally Intentionally Devalue Their Currencies

question 63

Essay

Countries occasionally intentionally devalue their currencies. So what is the logic and likely results of intentionally devaluing their domestic currency? International economic analysis characterizes the trade balance adjustment process as occurring in three stages. List and explain the three stages too.

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Definitions:

Fertilization

The union of the ovum and sperm.

Recessive

Pertaining to a gene that is expressed in the phenotype only when its allele is identical, needing two copies (one from each parent) to exhibit the trait.

Dominant

Referring to a trait, gene, or characteristic that supersedes another in genetic expression when both are present.

Ovum

The female sex cell, or egg.