Summary of Exchange rate 04: Impact on imports and exports .flv

00:00:00 - 00:00:00

The video covers how exchange rates affect imports and exports. If the US dollar is more expensive in Rands, imported goods become more expensive, but if the US dollar is cheaper in Rands, South African exports become cheaper for American buyers. A perfect balance between importing and exporting is the ideal solution to reduce the trade deficit, but this is still a controversial topic.

• 00:00:00 In this section, we learn about how exchange rates impact the prices of imported and exported goods. If a US dollar is more expensive in Rands, imported products become more expensive in Rand terms. On the other hand, if a US dollar is cheaper to buy in Rands, the Rand has appreciated against the US dollar, making South African exports cheaper for American buyers. To reduce the trade deficit, the ideal situation is a perfect balance between importing and exporting, but this is still a topic of debate.