The correct answer is: A. The nation is now practically offering its products and services at a cheaper price in a foreign nation.
When the currency of a country decreases against the currency of another country, it means that the value of the first country’s currency has decreased relative to the value of the second country’s currency. This means that it will now take more units of the first country’s currency to buy one unit of the second country’s currency.
In the case of the rupee and the US dollar, if the rupee decreases against the dollar, it means that it will now take more rupees to buy one dollar. This means that Indian products and services will now be cheaper for Americans to buy. This is because Indian companies will now be able to charge less rupees for their products and services, and Americans will be able to get more rupees for their dollars.
This can have a number of benefits for India. It can make Indian products and services more competitive in the global market, and it can attract more foreign investment. It can also lead to higher exports and economic growth.
However, it is important to note that a decrease in the value of the rupee can also have some negative consequences. For example, it can make imports more expensive, and it can lead to inflation. It is important for the Indian government to carefully manage the value of the rupee in order to maximize the benefits and minimize the costs.
Here is a brief explanation of each option:
- Option A: The nation is now practically offering its products and services at a cheaper price in a foreign nation. This is the correct answer, as explained above.
- Option B: The nation is now practically offering its products and services at a higher price in a foreign nation. This is incorrect, as explained above.
- Option C: It will no effect on the prices of the products. This is incorrect, as explained above.
- Option D: There is no link between two situations. This is incorrect, as explained above.