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Australias Exchange Rate
Beginning of essay
What is an exchange rate? What factors determine the exchange rate for the Australian dollar?
An exchange rate is the ratio at which a country's currency exchanges for the currency of another country. Exchange rates are typically expressed as the foreign currency equivalent of one unit of domestic ....
Middle of essay
....Australia's exports. Relative inflation rates are just one factor. To be competitive on international markets, a country's exports must be at least as cheap as the same goods and services supplied by producers in other nations. Any change in domestic prices relative to those in other countries will alter the international competitiveness of local industries. If Australia experiences high inflation rates relative to other nations, exports will become more expensive and therefore less competitive..... |
| Number of words: 1167 |
Approximate pages: 5 |
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