Bilateral and International Trade of Bangladesh and India: Effect of Falling Exchange Rate of Indian Rupee

Abstract

Money is the most important thing in the current world. It is a tangible good with a lot of intangible properties. It’s most important feature is its exchangeability. It pursues a man to purchase. When money is used for exchanging it is defined with a special term called currency. Currency is the only one exchange medium in the modern era. It is universal that the change rate of a currency of a specific nation can change the trade balance of it. And it can influence on the trade of those countries who are involved however with that country. In this paper we will see how a currency rate of one country can reign over international trade of another country.

Keywords: Bilateral trade, Greenback, GDP, FDI, SAFTA, 4207 code