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An international business will operate more easily in a fixed exchange rate system. Knowing what the equivalency of goods will allow for predetermined forecasting, however, a fixed rate decreases the opportunity for profits.

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9y ago
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9y ago

Flexible exchange rate system made international business operate easily . This was especially seen after the Bretton Woods collapse. Flexible exchange rate brought market uncertainty and instability to business while the flexible system is vulnerable to crisis.

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Q: Can international business operate more easily in a fixed exchange rate system or in a flexible exchange-rate syatem?
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