The competitive devaluation by the countries would badly affect which among the following?
- AExporters
- BImporters
- CTraders
- DService providers
Solution & Step-by-step Explanation
Competitive devaluation occurs when countries intentionally weaken their domestic currencies to make their exports cheaper and more competitive abroad. However, this depreciation fundamentally spikes the domestic cost of foreign goods, severely and badly impacting domestic importers who must spend more local currency to purchase the same volume of foreign goods.