How does currency appreciation typically affect a country's import dynamics and international trade balance?

When a country's currency appreciates, it means that its money becomes stronger compared to other currencies. This makes imported goods cheaper for people in that country because they need to spend less of their own currency to buy products from abroad. For example, if the value of the dollar increases, a smartphone that costs 500 euros will cost fewer dollars than before, encouraging more imports. However, this also makes the country's exports more expensive for foreign buyers, which can lead to a decrease in sales of domestic goods abroad. Overall, while currency appreciation can boost imports, it may hurt the trade balance by reducing exports, potentially leading to a trade deficit.