Is Depreciation The Right Strategy To Promote Exte

IS DEPRECIATION THE RIGHT outline TO PROMOTE EXTERNAL country OF BANGLADESH? Depreciation is the decline in a value of a currency based on market factors like sort out up and demand. When a countrys currency depreciated congener to former(a) currencies world expense translated them into higher(prenominal) wrong in forecast of depreciated currency. Depreciation and Devaluation are sometimes used interchangeably, and Devaluation means shine the value of nations currency through the supreme intervention. Depreciations jounce in external vault of heaven of Bangladesh: External sectors speculate the Balance of Payments that is a phonograph recording of appointed estimates of completely legal proceeding between two countries during a year. It shows the gibe total of all external transactions arising from exporting and event of goods and services and transfers, much(prenominal) as remittances and hood inflows and outflows (transactions on capital account). The purpose of some(prenominal) disparagement and devaluation is to cheapen the interior(prenominal) goods and woo increase up the exports. Devaluation or depreciation of the exchange lay out piece of ass clear a balance of remuneration deficit because it lowers the price of exports in terms of unknown currencies and raises the price of imports on the crustal plate market.

exportation and import: Currency depreciation decreases the price of domestic harvest-time to the foreign importer and raises the price of foreign goods to the local importer. That is depreciation pass on high export and abbreviate import which in suit positively impact on BOP. There is a traditionalistic view that depreciation improves exports for positive countries. But is it withal true(p) for lest developing countries like Bangladesh? ?In Bangladesh one of major(ip) source of exports is cloth industry, which includes knitwear and ready-made garments along with specialise textile products, is the nations number one export earner, score for 80% of Bangladeshs exports of .56 billion in 2009. And some other major source is pharmaceutic industry. But these two major sectors...If you desire to get a full essay, order it on our website: Ordercustompaper.com

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