Here’s how each entity would be affected by a depreciation of the Brazilian Real:
Helped
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A Brazilian tourist who wants to visit Italy: Hurt (because the cost of traveling abroad increases as the Real weakens)
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A South African consumer who buys Brazilian coffee: Hurt (the cost of Brazilian coffee would increase for the South African consumer as the Real depreciates)
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A Brazilian investor who has already invested in US Stocks: Hurt (the value of their investment can decrease in Real terms when the Real depreciates)
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A Canadian investor who wants to invest in a Brazilian warehouse: Helped (the depreciated Real makes investments in Brazil cheaper for foreign investors)
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A Brazilian farm that exports soybeans to China: Helped (exports may become more competitive due to lower prices in foreign currency)
Summary Table
| Helped | Hurt | |------------------------------------|---------------------------------------------------------| | A Canadian investor who wants to invest in a Brazilian warehouse | A Brazilian tourist who wants to visit Italy | | A Brazilian farm that exports soybeans to China | A South African consumer who buys Brazilian coffee | | | A Brazilian investor who has already invested in US Stocks |
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