Question : Devaluation is mostly done to ____.
Option 1: encourage export
Option 2: encourage import
Option 3: discourage import
Option 4: encourage both export and imports
Correct Answer: encourage export
Solution : The correct answer is encourage export .
Devaluation is mostly done to encourage exports by making a country's goods more competitively priced in the global market. When a currency is devalued, its exchange rate decreases, making exports cheaper for foreign buyers.
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