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Question about exchange rates


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Hey uusinjsh,

Do not post your IA here if it's not graded yet. You may upload it after you graduate, after you get your marks, but not now :P b/c it is subject to plagiarism. Anybody can just steal it. If you want, just summarise your points and list them here so we won't have a copy of what you wrote but we know roughly what you did write.

Anyhow I took a look at it and thought I could give some feedback.

An increase in export will increase net export in the short term.

Then you may want to define aggregate demand if you haven't, give the equation AD=C+I+G+(X-M) and talk about the increase in component X which leads to an increase in AD. Then yes talk about increase in GDP, may want to mention economic growth too.

in future,

in the long run :)

... can be a cause of ...

... can cause ...

reduces 3 words :P

local currency

may want to mention USD but not a big deal

due to high demand of

high demand or high aggregate demand? I am not sure but just check :P

to pay for US products

purchase? word choice :S not a big deal, though

I would say it is right concept wise, but I can't comment much on the export part b/c I haven't studied International Trade, just talked about it in Macroeconomics. I am sure it is right, though :D may want to add more details if there is any :)

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