@zareen said in MKT529 GDB 1 Solution and Discussion: discuss whether change in dollar rate has an influence on exports or not. How does exchange rate affect imports and exports? The exchange rate has an effect on the trade surplus (or deficit), which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.