Finance, Forex and Investments

How would the exchange rate help to improve a country's balance of payments?

Can somebody explain how this would happen. I know balance of payments has to do with exports and imports but I'm trying to figure out how that ties in with the exchange rate. Whats dffs?

Public Comments

1. dffs
2. If a country's currency is too high it will not be able to sell many exports, but it will be able to invest cheaply in other countries' companies. Therefore it will hurt its exports and help other countries's companies. These countries will get money and use it to buy government bonds (which help keep that country's currency low) or property. The exporting country will grow quickly for a while, but inflation will go up also and it will not be able to buy goods (like food/energy products...) from other countries at cheap prices either.
3. please search in wikipedia or yahoo web