How do exchange rates affect international trade?
A. They prevent developing countries from trading with developed
countries.
B. They force a country to adjust its import rates to match its export
rates.
C. They determine how much a country can import for a certain
amount of currency
D. They encourage free trade between countries that once had
barriers to trade.

The exchange rates affect international trade as they determine how much a country can import for a certain amount of currency. Thus the correct answer is C.

What is international trade?

Trade refers to buying and selling of goods in exchange for money. When this trade or business took place between cross countries or at a global level indicates international trade.

International trade is possible with the help of imports and exports when a country sends goods for the purpose of sale it is called exports while the purchase of goods and services is called an import.

The cost of a nation's goods and services rises when its exchange rate rises which makes Imports became more affordable. This may result in a decline in exports and an increase in imports for that nation.

Therefore, option C determines how much a country can import for a certain amount of currency is appropriate.

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