Eternal President Kim il Sung bare In mind that the comment was 4 years ago , the article you read and the quick effective resources available on this topic now were most likely not available to him 😌

@@TMIKEZY 7 now…yikes. Time flies

​@@EternalShadow1667 8 now

😂😂

@@elimoore6591 9 now and just done 2024 paper 1

You could offer beer at least :p

+Denon Merlo How did it go? IB?

+Jeffrey Li It wasn't that bad, Marshall Lerner condition didn't come up tho xD

@@AvrilSk8erboi27 got my exam tomm. I just hope this comes up for me :D

same g

@@samuela775 Lol, that was 7 yrs ago man. I've finished both highschool and college. Currently working now, time really does fly.

No it wont but the rate at which it improves is slower.In the mean time unemployment and inflationary pressure would worsen the countrys situation

kzfaq.info/get/bejne/ebtkmphplrPFf4k.html Here is a loop of the 'oh, yes meme'

the sum of two elasticities has to be greater than 1 if so the elasticity of net elasticity of demand will be elastic and TR will increase. So if independently both elasticities are less than one but add up to be more than one, then the next elasticity of exports and imports, i.e. X-M, is going to be elastic.

Because we are always in a deficit😉

Hannah El Sabbagh o

Joshua Klinger It is the sum of the elasticities that determines the final effect on net exports. This may clear it up

PLEASE

+Brian Gibson The price charged will remain the same yes but if foreign currency is collected which then needs to be converted, less will be earned in terms of revenue. This is very common in the real world

+EconplusDal Thanks for responding. I was under the impression that the foreign party that is purchasing the goods is actually converting their currency to our currency then purchases it for the quoted price in the domestic currency. I thought this would actually increase revenue because the price to foreign firms falls increasing their demand, while my price is unchanged in my currency. My train of thought is summarized by saying if I sell a product for 5 dollars and collect 10 units of foreign currency which equals 5 dollars, I've still made 5 dollars. Then the dollar weakens and I sell the same product for 5 dollars, collect 8 units of foreign currency (which now now equals $5) I have still made 5 dollars. Sorry for the length of this.reply. Where am I going wrong? Do you have any videos that might address this?

+Brian Gibson In your example, if the $ weakens and you continue to charge $5 in a foreign currency, the relative price of your good will decrease. Therefore, you may sell a greater quantity of your good (as a fall in price leads to an extension in demand) and increase your revenue.

thank you Brian that's what i was bloody thinking it was confusing the hell out of me

The depreciating domestic currency cause a reduction in the net price of a domestic product in the foreign market. However due to inelastic net exports, the net reduction in price leads to a reduction in revenue earned in export markets.

No effect on current account deficit

Ardi Janjeva Depends on the country and how important the exchange rate is in determining its trade position. Sure there are lots of other factors that could also do it, but for some countries a weaker currency on its own can well rectify a current account deficit particularly if it was a strong currency that led to it in the first place

***** I see. Are there any countries that you could use as examples to prove that this can be the case, where the economy is heavily reliant on exchange rates determining the structure of the economy as a whole?

Ardi Janjeva Japan is a very good example, China too. Japan has experienced the J curve effect in recent times - the best recent example I can give you

Weak Currency, Imports, Dear, Exports, Cheap

Weaker (Currency). Imports Dearer (more expensive). Exports Cheaper

export revenue never falls. as the money is converted back into the currency, export revenue will always rise. The condition holds if the export revenue grows higher than the increase in import expenditure. Sorry for such a late reply, I'm sure you've mastered it over the last 3 years!