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Monetary Devaluation
Beginning of Paper
Like every other product the coin of a country has a price, which is the exchange type; this represents the quantity of Mexican pesos that are needed to buy an American dollar, and like every other price this one is determined because:
a) Because of the offer and demand of dollars, o .... Middle of Paper .... our country or in the ones with whom we realize mostly the exchange of goods and services, affect the behavior of demand and offer of dollars and as a consequence its price. If in Mexico the exchange type maintains fixed and the tendency of high prices is bigger than that one of the countries with whom we handle business normally, we will have a relative expensiveness of our goods and services with respect to the foreign ones. At the same time, foreign products will be cheaper to us. This situation provokes an increment in imports, carrying ....
715 words | 3 pages
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