CONDITIONS IN WHICH DEVALUATION CAN IMPROVE A COUNTRY’S BALANCE OF PAYMENTS

           CONDITIONS IN WHICH DEVALUATION CAN IMPROVE A COUNTRY’S BALANCE OF PAYMENTS                                        

Devaluation will improve the balance of payment position of a country under the following conditions:

  • The elasticity of demand for import, must be elastic. Increase in prices of imports, as result of devaluation will reduce the demand for import.
  • The country’s exports must have elastic demand in other countries.
  • Other nations must not devalue their own countries.
  • For devaluation to be effective there must be no increase in wages and others incomes.
  1. migration
  2. population
  3. market concept
  4. money market
  5. shares
  6. how companies raises funds for expansion
  7.  

 types                       

  1. BALANCED DIETS
    141. LACTATION DIETS
    142. MALNUTRITION
  2. RINDER PESTS

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