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GDP is only calculted from what’s built in the country, so
-> Net #Exports = Exports - #Imports
Negative Net Exports means Imports higher
Positive Net Exports means exports higher
Terms of trade #terms-of-trade
Currency -> net exports -> GDP
Low Currency -> import price up -> imports down Low Currency -> export price down -> exports up
Therefore: Net GDP Gain -> strengthens GDP
High Currency -> import price down -> imports up High Currency -> export price up -> exports down
Therefore: Net GDP Loss -> weakens GDP
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