Let's see below :)
1. Exchange rate = cost of one currency in terms of another
Example: EUR/USD = 1.05, 1 Euro buys 1.05 Dollar
Net exports = Exports - Imports
Example: A country Exports for 10Bn and imports for 8Bn, hence net exports are 2Bn
The lower the countries' exchange rate is, the more attractive its products get. Hence the more buyers are there. However, the imports become more expensive. This is why the relationship mostly depends on the currency rates amongst the countries' currencies that a county runs regular trades with.
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