How has exchange rate instability affected international trade and investment?

Suppose Lufthansa buys 10 Boeing 747s for $150 million in 2012, financed by a five-year loan from the U.S Export—Import bank. There is a one—year grace period on principal and interest payments. What is the net impact of this sale on the U.S. balance of payments in 2012?

What is the effect of a trade deficit on the current account balance?
Asked May 20, 2013
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Answered Dec 16, 2019
The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper. - instaforex review if you want to get more information about fx.
Answered Apr 22, 2020
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Answered Dec 21, 2020

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