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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.
What else can I help you with?
Why do countries need a system for exchanging currencies?
Countries need a system for exchanging currencies to facilitate international trade and investment, enabling businesses and individuals to conduct transactions across borders. Currency exchange systems help stabilize exchange rates, reduce the risks associated with fluctuations, and promote economic cooperation. Additionally, these systems support tourism and allow for the efficient allocation of resources in a globalized economy. Overall, they play a crucial role in ensuring smooth financial interactions between nations.
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+
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 was this system of exchanging goods called?
bartering
In economics what does the term market refer to?
The system of exchanging goods. A+
What is the bata system?
A bata system is when two people exchange goods or anything without exchanging money
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 bater system?
It seems there is a typo in your question. Did you mean "barter system"? The barter system is a method of exchanging goods and services without using money. Participants trade items of equivalent value directly with each other, relying on mutual agreement and need.
What is a system of exchange that involves exchanging one set of goods for another?
trade-off
