Question : Depreciation of a country's currency can have a positive impact on its:
Option 1: Export-oriented industries.
Option 2: Import-dependent industries.
Option 3: Both export-oriented and import-dependent industries.
Option 4: Neither export-oriented nor import-dependent industries.
Correct Answer:
Export-oriented industries.
Solution : The correct answer is a) Export-oriented industries.
When a country's currency depreciates, it becomes cheaper relative to other currencies. This has the potential to benefit both export-oriented.
A depreciation of the currency makes a country's exports more affordable and competitive in the global market. This can lead to an increase in export volume and revenue for export-oriented industries, as their products become relatively cheaper for foreign buyers.
