A company in India manufactures a t shirt worth 200 in India so accordingly its cost price in US would be 5 dollars, if he wishes to sell his product in US , he definitely should sell at more than 5 dollar to incur profit
A Chinese company also manufactures the same t shirt at 42 yuan i.e its cost price in US is 7 dollar. they should sell heir product at price more than 7 dollar to incur profit
Under such circumstances , Indian company will sell his product at 6 dollar in US which is less than the cost price of Chinese company's Tshirt. so Indian company Tshirt can be easily sell and purchased in US competitively
Now if china devalue its currency and it becomes 1 dollar =10.5 yuan.
so now same Tshirt will cost 4 dollars in US , so everybody will purchase Chinese T shirt.
What can India do to compete china in US market under such scenario?
India will Devalue its currency in such a way that Cost price of T Shirt in US become low than China i.e around 1 dollar =66 rupee, so that cost price of T Shirt in T Shirt in US is at 3 dollar. so that their product can sell in US.
In the same way in order to compete for different product in market, other country will also devalue its currency.
Hope this will be Helpful