When a nation's currency appreciates, its products become to other countries, which ultimately that nation's exports. on top of that, foreign goods are within that nation, which ultimately that nation's imports.

When a nation's currency appreciates, its products become more expensive to other countries, which ultimately decreases that nation's exports. On top of that, foreign goods are cheaper within that nation, which ultimately increases that nation's imports.

Explanation:

The exchange rate affects foreign trade, so that when the exchange rate of a country falls, the prices of imported goods rise, while exports become cheaper for foreigners. As a result, the country is more competitive in world markets and net exports increase.

On the contrary, when the exchange rate rises, imported products become cheaper but exports decrease, as these products are more expensive for foreign countries.

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