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respond to this discussion Changes in exchange rates can have a significant affect on prices, output, and trade flows together. If domestic currency loses its
respond to this discussion "Changes in exchange rates can have a significant affect on prices, output, and trade flows together. If domestic currency loses its value, it can decrease items that are imported due to the increase in cost. Output could be negatively affected by the higher pricing of imports. Trade flow is affected by exchange rates because each country wants to be the one to benefit from the value difference in currency. This can slow down trade between countries
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