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when we import, this is the component of demand of foreign exchange because we have to pay in the currency of other country but when we export, the foreigners have to pay our country than how export is a source of supply of foreign currency

Posted by Jolly Chabra 7 years ago

CBSE > Class 12 > Economics

4 answers

Riya Jain 7 years ago

Just take it commonlly. If you pay in foreign currency, first you have to convert it from our currency into their. As same as if they have to pay in our currency then they should have to first convert that foreing currency in our. So that exchanged currency will indirectly came in our country...... Hope it will clear your doubt.!!!!!!

Jolly Chabra 7 years ago

pls explain it to me

Jolly Chabra 7 years ago

than how export is a source of supply

Jolly Chabra 7 years ago

when we pay other country in their currency than the other countries should have to pay us in our currency

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