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

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.


Objectives of the Bretton Woods system?

The objectives of the Bretton Woods system are to achieve exchange rate stability and promote international trade and development.


What are the advantages of a fixed exchange rate system compared to a floating exchange rate system?

In a fixed exchange rate system, the advantages include stability in international trade and investment, reduced uncertainty for businesses, and lower inflation rates. This system can also help countries maintain control over their currency value and prevent sudden fluctuations.


What type of economic system does Somalia have?

Djibouti's economy is dependent upon acting as a transit port for the region and as an international shipping and refueling center.


What is the difference in how the exchange rate reflects the supply and demand for the currency between a flexible-exchange rate system and a fixed-rate exchange system?

Fixed Exhange-Rate System: currency system in which governments try to keep the values of their currencies constant against one another Flexible Exchange- Rate System: allows the exchange rate to be determined by supply and demand. With a flexible exchange- rate system, exchange rates need not fall into any prespecified range.

Related Questions

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

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.


What is Forex trading and exchange risks?

Forex is an international bank company providing customers with the opportunity to exchange currency. Their trading and exchange risks are flaws in the transition system.


How does the Nairobi stock exchange link Kenya to the international financial system?

Craig Sinclair and Michael did it


Objectives of the Bretton Woods system?

The objectives of the Bretton Woods system are to achieve exchange rate stability and promote international trade and development.


What are the advantages of a fixed exchange rate system compared to a floating exchange rate system?

In a fixed exchange rate system, the advantages include stability in international trade and investment, reduced uncertainty for businesses, and lower inflation rates. This system can also help countries maintain control over their currency value and prevent sudden fluctuations.


Stages of development of international monetary system?

The stages of development of the international monetary system are: 1. Bimetallism : before 1875 Both gold & silver were used as means of payment. 2. Classic Gold Standards : 1875 - 1914 The trading operated under a fixed exchange system called gold standards. 3. Interwar Period : 1915 - 1944 International monetary system was unstable and exchange rates were highly volatile due to the World Wars. 4. Bretton Woods System : 1945 -1972 IMF and IBRD took shape in order to rebuild the international economic system. 5. Exchange Rate regime : 1973 - present A more flexible system built in view of collapse of the Bretton Wood System


What has the author Morris Goldstein written?

Morris Goldstein has written: 'The global effects of fund-supported adjustment programs' -- subject(s): Economic conditions, Economic development projects, Economic policy, International Monetary Fund 'The Asian financial crisis' -- subject(s): Financial crises, Foreign exchange, Government policy, International Monetary Fund, Stock exchanges 'Coping with too much of a good thing' -- subject(s): Economic policy, Capital movements 'Jesus in the Jewish tradition' 'Policy Issues in the Evolving International Monetary System' 'International Capital Markets' 'The exchange rate system and the IMF' -- subject(s): Foreign exchange administration, International Monetary Fund 'Have flexible exchange rates handicapped macroeconomic policy?' -- subject(s): Foreign exchange rates, Economic policy 'Safeguarding prosperity in a global financial system' 'Controlling currency mismatches in emerging economies' -- subject(s): Foreign exchange rates, Foreign exchange administration, Monetary policy 'The Exchange Rate System: Lessons of the Past and Options for the Future'


What type of economic system does Somalia have?

Djibouti's economy is dependent upon acting as a transit port for the region and as an international shipping and refueling center.


What is a system that cannot exchange matter or energy with its surrounding?

A closed system is a system that cannot exchange matter with its surroundings, but can exchange energy. A system that cannot exchange matter or energy with its surroundings is called an isolated system.


What is a dependent system?

A dependent system is defined as "a system of equations that has infinite solutions." It is an equation that is used in various mathematical situations.


If a dependent system of equations is solved how many solutions will there be?

if a dependent system of equation is solved, how many solutions will there be?


Which IDS method is operating system dependent?

The IDS method that is operating system dependent is Network Based