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Why does international trade require a system for exchanging currencies?
Wiki User
∙ 15y ago
Because if you produce goods in Japan then you use the yen as your currency (that is what you pay your taxes and workforce in). However you may sell your goods in the US and Europe. The people in the US will purchase them in dollars and in Europe in euros and you therefore need to convert these currencies into yen so that you can pay your local debts.
Wiki User
∙ 15y ago
Wiki User
∙ 13y agoFor people who visit that country and that they will be able to purchase things if needed.
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How does the IMF try to stabilize the international monetary system?
The IMF endeavors to stabilize the international monetary system by temporarily lending resources in the form of foreign currencies and gold to countries experiencing international payment difficulties.
What was this system of exchanging goods called?
bartering
What is the bata system?
A bata system is when two people exchange goods or anything without exchanging money
In economics what does the term market refer to?
The system of exchanging goods. A+
In economics what does the term market and refer to?
The system of exchanging goods. A+
What is the term for a system for exchanging currencies between nation?
Foreign Exchange
How does the IMF try to stabilize the international monetary system?
The IMF endeavors to stabilize the international monetary system by temporarily lending resources in the form of foreign currencies and gold to countries experiencing international payment difficulties.
What were the goals of the international monetary system founded in the early 1940s?
The goals of the first international monetary system were: the unrestricted conversion of currencies; the establishment of a value for each currency in relation to others; and, the removal of restrictive trade practices.
What is bater system?
exchanging goods
What was this system of exchanging goods called?
bartering
What is the bata system?
A bata system is when two people exchange goods or anything without exchanging money
In economics what does the term market refer to?
The system of exchanging goods. A+
What does term economic chaos refer to?
the system of exchanging goods
What was exchanged in the system of feudalism?
exchanging land for military service
In economics what does the term market and refer to?
The system of exchanging goods. A+
A barter economy is?
an economic system based on exchanging goods instead of money.
What is a system of exchange that involves exchanging one set of goods for another?
trade-off
