EdwardBaiamonte
Platinum Member
- Nov 23, 2011
- 34,612
- 2,153
- 1,100
That's totally stupid you can get very rich by a lot of exporting or by little exporting or by exporting and importing from different areas around your country you living standard depends on how great your industries are on the international and domestic market. You can't manipulate currency and get rich that were possible everybody would do itwrong!!! low export prices cause low wages and poverty. how domestic production is regulated and to what end is a different subject. Liberal govt might engineer low wages there too so everyone lives in poverty.you do get an advantage by devaluing your currency if you are less import dependent and more export dependent.
why is there an advantage??? If you export at low prices your wages then are low too. Low wages and poverty is an advantage?
Yes but like mentioned above, this results in poverty only in the absence of domestic production. This is why Asian living standards rise during Asian currency devaluation and in the same time western living standards fall with it.
No because domestic production is what determines your dependence on import. The more independent of import you are, the more freedom you have about the currency valuation and living standard.