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Plz answar fast @ foreign exchange …

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Plz answar fast @ foreign exchange is in equilibrium and an indian company goes to foreign and set up industry there then what will be the effect of foreign rate of india??

Posted by Snehil Lodha 5 years, 8 months ago

CBSE > Class 12 > Economics

2 answers

Chesta Pawan Manchanda 5 years, 8 months ago

According to the given scenario when there is the investment inculcated by indian investor in foreign then the demand for foreign currency will rise cause a rightward shift in demand curve i.e increase in demand. And as we know deman and rate of forex have inverse relation so it will cause a rise in forex rate.

Dan • 5 years, 8 months ago

◆ we want to gave factor cost to the forign govt (rent, wages, land cost)... ◆ forign govt will catch small percent from our NFIA... ◆high land tax will be imposed by forign govt....

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