Impacts of the Dollar's Depreciation on the United States Agricultural Trade
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Date
1988
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This was a discussion of those factors that impact US economic trade with foreign countries. The devaluation of the US dollar typically lowered the cost of US goods making them more affordable to foreigners. However, this is not always the case. The trade balance does not improve with the fall of the US dollar until the actual volume of exports increases in response to lower prices and the volume of imports has a chance to decrease in response due to higher prices. The rise in import prices leads to a temporary deterioration in trade balance because the US imports the same amount of foreign goods at higher prices after the dollar depreciation.