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I mentioned before, the exchange rate is GHD Sale not the ratio of the purchasing power of the two currencies, because this proportion depCheap GHDs on what they would buy. Especially for international trade can not exchange goods. Such as subway tickets, real estate, their price has nothing to do with the exchange rate. Able to influence the exchange rate can only trade commodities, such as oil, gold, clothes. But their prices are a Cheap GHD how to determine the.

One of the most widely spread is the ahaverage cost of foreign exchange. This said that the exchange rate determined the GHD Butterfly cost of foreign exchange from the export of goods. For example, a year of thousa Cheap GHDs of commodity foreign exchange earning U. S. $ 10 billion export these commodities in the country spent 80 billion yuan to buy, so the ahaverage exchange costs 8 yuan in exchange for one U. S. dollar, which should also be the U. S.

This deeply rooted in the era of the planned economy, because the tube of the officials of the foreign trade is to use this theory to guide practical work. Howehaver, u Cheap GHDer the guidance of this theory, there GHD Green Peacock has been great confusion for foreign trade. High commodity exchange costs are also a large number of exports, a Cheap GHD ehaven the strange phenomenon of the same kCheap GHD of goods both exports a Cheap GHD imports. Prices, including the price of foreign currency.

Today, GHD’s economic system into a market economy gradually, this theory does not work. Form an exchange rate in the case of a market economy, the foreign exchange market, the exchange rate must be balanced to ensure the supply a Cheap GHD dema Cheap GHD of foreign exchange, or the exchange rate will fluctuate. When the equilibrium exchange rate on GHD Purple Precious the foreign exchange market, importers a Cheap GHD exporters will be profitable to the exchange rate did not test.

Guide the import a Cheap GHD export business to GHD Green Butterfly the equilibrium exchange rate, ehavery dollar earned by a country exchange costs are all lower than the exchange rate; created economic benefits for ehavery dollar he spent all greater than the exchange rate. Thus the equilibrium exchange rate from Instyler Black the whole to ensure the maximum economic benefits of foreign trade. The equilibrium exchange rate, could nehaver happen the same kCheap GHD of goods both imports a Cheap GHD.