Spending money in a country essentially stimulates that country’s economy…so if the youth send money that they earned in a foreign home to Iran, it will stimulate Iran’s economy because the parents will be spending money in Iran and the money will circulate through Iran’s economy. If the parents send money abroad, it will stimulate the foreign country’s economy.
the current account of balance of payments will be affected. when you purchase something in another country you have to use that currency and that means that you have to buy that currency if someone buys more of one curreny then the price of the currency moves up and the currency becomes stronger and can affect things like investment from abroad and also domestic investment.
Spending money in a country essentially stimulates that country’s economy…so if the youth send money that they earned in a foreign home to Iran, it will stimulate Iran’s economy because the parents will be spending money in Iran and the money will circulate through Iran’s economy. If the parents send money abroad, it will stimulate the foreign country’s economy.
Comment by schatzi — September 1, 2009 @ 5:52 am
the current account of balance of payments will be affected. when you purchase something in another country you have to use that currency and that means that you have to buy that currency if someone buys more of one curreny then the price of the currency moves up and the currency becomes stronger and can affect things like investment from abroad and also domestic investment.
Comment by Barry S — September 1, 2009 @ 10:57 pm