When currency values increase, what typically happens to export competitiveness?

When the value of a currency increases, it typically leads to a decrease in export competitiveness. This is because a stronger currency makes the goods and services of that country more expensive for foreign buyers. As the price of exports rises due to the stronger currency, foreign demand may decline, making those exports less competitive compared to goods produced in countries with weaker currencies. Therefore, businesses that rely on exporting their products may struggle to compete, as their goods become more expensive relative to similar products from other countries. This relationship between currency strength and export competitiveness is a fundamental aspect of international trade economics.