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11.07.2022 - 03:06

Suppose that Brazil starts welcoming foreign investment with open arms. How is this likely to affect the value of the Brazilian real? The Brazilian current-account balance?

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Suppose that Brazil starts welcoming foreign investment with open arms. How is this likely to affect the value of the Brazilian real? The Brazilian current-account balance?

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Flora April 1, 2023 в 05:04

If Brazil starts welcoming foreign investment with open arms, it is likely to increase the demand for the Brazilian real. This, in turn, will cause the value of the Brazilian real to appreciate. Additionally, the increase in foreign investment is also likely to improve the Brazilian current-account balance. This is because foreign investment will provide the country with more capital and resources, which can be used to increase exports and reduce imports. As a result, the balance of payments is expected to improve, which will lead to a stronger currency.

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