Change in exchange rates have radical impact on patterns of international trade and capital flows

The statement "Change in exchange rates have a radical impact on patterns of international trade and capital flows" is a valid observation about the dynamics of the global economy. Exchange rates play a pivotal role in shaping international trade and investment decisions. Here are some key points to consider when discussing this statement:

1. Exchange Rates and Competitiveness: When a country's currency depreciates (its exchange rate falls relative to other currencies), its exports become cheaper for foreign buyers. This can boost a nation's exports, as foreign consumers find its goods more affordable. Conversely, a stronger currency ___ ________ ___ _________ _____ __________ ___ _______ ______ _______.
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