Suppose two countries, A and G. Ceteris paribus, a decrease in prices in country G leads to:

1)

an increase in exports to A, and therefore a depreciation of the countrys A currency

2)

a decrease in consumption in G, and therefore a decrease in imports, resulting in a depreciation of the countrys A currency.

3)

an increase in exports to country A, and therefore an appreciation of the countrys A currency

4)

an increase in consumption in G, and therefore an increase in imports, resulting in an appreciation of the countrys A currency