The impact of a rising exchange rate

First of all, it is popular to say that the exchange rate of the local currency declines, that is, the devaluation of the external currency of the local currency can play a role in promoting exports and inhibiting imports; if the exchange rate of the local currency rises, that is, the external currency value of the local currency rises, it is conducive to imports, not conducive to exports. Of course, the impact of exchange rate changes on imports and exports food grade aluminum foil must be accompanied by an accompanying condition, that is, the demand for imports and exports is price elastic? Changes in the prices of imported and exported products will have an impact on the demand for imported and exported kitchen Aluminium Foil Container If import and export demand is sensitive to changes in exchange rates and commodity prices, that is, the demand elasticity is large, then a decline in a country’s exchange rate and a corresponding reduction in the price of export commodities can effectively stimulate the export volume; while the increase in domestic prices of imported commodities can effectively inhibit the export volume. Demand for imported goods, thereby reducing the quantity of imports. It is generally believed that if the sum of the demand elasticity of export commodities and the demand elasticity of imported commodities is greater than 1, a decline in the exchange rate can improve a country's trade balance.
As far as export commodities are concerned, there is also the question of the elasticity of export supply, that is, whether the volume of export commodities can increase after the exchange rate falls, is also constrained by the possibility of expansion of commodity supply.
In real life, the role of exchange rate on import and export is mainly achieved through competition in the international market. The devaluation of the local currency means that the local currency is worthless, and the currency of other countries is valuable, the price of products priced in the local currency will fall, and the products priced in other currencies will rise, which will lead to a decrease in imports and an increase in exports.