Question

Hey! This was my answer to this question, but I feel like I'm missing something in my answers. Thanks ahead of time!

Second Part of the Course National Aero R ates) p 2 The exchange rate of the CAD USD cepecited from 2013 til round 2016. Both pat ecited from 2009 to 2013, ad e d in the following a) Canada hes depreciated nominally relative to the usd consumers were adorsely affected, they have to pay more for impons. b) despte the adverse attects empenenced by the consumers, CAD exports would melease due to the degreatated exchange rate. This could be good. o rderly acces We'll be on the priod 2013-2016 (a) (20 ) Do you think that were b during the lyp your choice (120 Do think that we the recital Bridly explain your choice were all during

Answer 1

a) Consumers would have a negative impact in Canada since they might have to spend higher equivalent CAD for the US imports than earlier. Also domestic producers will prefer to export since they have better margins because of CAD depreciation which will cause local prices for goods exported to increase in Canada.

b) Canadian Exporters would have benefitted because of currency depreciation since that will make their products more competitive in the US markets which can lead to higher demand or they can have higher margins for same demand.