There are certain disadvantages for the United States economy attached to devaluation
The prospect of devaluation results in a speculative outflow of funds
By encouraging exports and discouraging imports, devaluation can improve the American balance of payments
The difference between the exports and imports is called the trade gap
Source: Bangladesh Bank - Assistant Director - 2011
Answer: By encouraging exports and discouraging imports, devaluation can improve the American balance of payments
Explanation:
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