When someone from country A buys something from someone in country B, person A%26#039;s money is first converted into the currency of country B, and then the product is purchased. If A buys more from B than B buys from A, the demand for B money relative to A money is greater, and the price of B%26#039;s currency has a tendency to rise relative to A%26#039;s currency. Example: the US buys more goods from China than China buys from the US. This makes pressure for the Chinese currency to rise relative to dollars, but the Chinese government prevents the appreciation of their currency relative to the dollar, in part by purchasing US debt, in the form of US government bonds. This keeps the price of their goods cheap.
Currency, price, and exchange rate plays a critical role in international business. Clarify this statement.?
Things related with money affect international business between countries. Business needs money to work. So... I guess... things that need money to work are affected by the things related to it?
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