Final answer:
When the US dollar depreciates against the Nepal rupees, Nepal exports to the US become less expensive, while US exports to Nepal become more expensive.
Explanation:
When the US dollar depreciates against the Nepal rupee, Nepal exports to the US become less expensive. This means that Nepali goods are more attractively priced for US consumers, potentially leading to an increase in imports from Nepal. On the other hand, US exports to Nepal become more expensive for Nepali buyers due to the weaker dollar, which can impact US companies selling goods to Nepal.
Additionally, as the dollar depreciates, the value of Nepal imports to the United States does not change in terms of the dollar amount, but the affordability of these imports may vary for US consumers depending on the extent of the currency depreciation.
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