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Monetary Devaluation
Part 1 of Paper
....ents the quantity of Mexican pesos that are needed to buy an American dollar, and like every other price this one is determined because:
a) Because of the offer and demand of dollars, or
b) Because of the monetary authorities of the country.
The origin of the exchange types comes from the necessity that residents of o.... Part 2 of Paper
....f the countries with whom we handle business normally, we will have a relative expensiveness of our goods and services with respect to the foreign ones. At the same time, foreign products will be cheaper to us. This situation provokes an increment in imports, carrying the demand of dollars, while the offer reduces as exports weaken. To stop this unbalance between offer and demand and not devaluating the coin, the government goes to external credit, establishes control over imports, subsides exp.... |
| Number of words: 715 - Approximate pages: 3 |
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