100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 Course International Finance (ECS3703) Institution University Of South Africa (Unisa) Book International Economics$2.50
ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 Course International Finance (ECS3703) Institution University Of South Africa (Unisa) Book International Economics
22 views 0 purchase
Course
International Finance
Institution
University Of South Africa
Book
International Economics
ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024
Course
International Finance (ECS3703)
Institution
University Of South Africa (Unisa)
Book
International Economics
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us...
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us...
All for this textbook (18)
Written for
University of South Africa
International Finance
All documents for this subject (42)
Seller
Follow
Jennifer2024
Reviews received
Content preview
ECS3703 Assignment
2 (COMPLETE
ANSWERS) Semester 2
2024 - DUE August
2024 ; 100% TRUSTED
Complete, trusted
solutions and
explanations.
ADMIN
[COMPANY NAME]
, ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester 2
2024 - DUE August 2024 ; 100% TRUSTED Complete, trusted
solutions and explanations.
Question 1 Assume that South Africa trades with the rest of the
world and has a deficit in its trade balance. With the aid of a
diagram, explain how South Africa would use exchange rates to
correct the
deficit……………………………………………………….[25
marks]
To explain how South Africa could use exchange rates to correct
a trade deficit, we need to understand the relationship between
exchange rates and trade balance. A trade deficit occurs when a
country's imports exceed its exports. South Africa can use
exchange rate adjustments to influence its trade balance. Here's
a detailed explanation along with a diagram to illustrate the
process:
Exchange Rate Adjustment and Trade Balance Correction
Step-by-Step Explanation:
1. Trade Deficit Situation:
o South Africa imports more goods and services than it
exports, leading to a trade deficit.
o This means that more South African Rand (ZAR) is
used to purchase foreign currencies to pay for imports
than is received from exports.
2. Depreciation of the Rand:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Jennifer2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.50. You're not tied to anything after your purchase.
