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5 November, 06:56

When nations impose currency controls on their economics some firms benefit and some are hurts?

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  1. 5 November, 09:10
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    True

    Explanation:

    I can explain this question using a current example of currency manipulation by a foreign government. In Argentina different governments set the exchange rate between the Argentine peso and the US dollar. Sometimes the peso is devaluated by the government which makes Argentinean products and services cheaper to export but makes all imports more expensive. These actions favor economic growth but also increase the inflation rate.

    On other occasions the government will appreciate the Argentinean peso against the dollar which makes imports cheaper and exports more expensive. Supposedly this is done to control high inflation rates.

    If you wonder why the Argentinean government does that, probably no one really knows. Its been happening since the 1990s and different political parties have governed the nation but this practice of artificially setting the currency value never stopped.
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