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Devaluation aims to facilitate imports (make them cheaper) and directs investments abroad. True or False? Why?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2016/08/25
Meklit Bekele
by Meklit Bekele , Assistant Manager Trade Finance Department , United Bank S.Co.

False.

It is the opposite, it is used to facilitate export. On the other hand the cost of goods imported increases.

Reji George
by Reji George , Business Development Consultant , Al Rais Group Of Companies

False. De-evaluation only leads to decrease in imports and increase in exports. Inflation rates are likely to go high too. It certainly has a positive impact on the economic growth. Manufacturers may find it difficult to adhere to their quality. Wages also seem to be less attractive for foreign workers.

Shahzad Ali
by Shahzad Ali , Manager International Trade, Logistics, Supply Chain & imports , Cool Industries(WAVES)

False, because Devaluation can facilitate to Expot only.