Assess the advantages and disadvantages of adoption of the Fixed versus Flexible exchange rate system. Choose...

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Finance

Assess the advantages and disadvantages of adoption ofthe Fixed versus Flexible exchange rate system. Choose and explainthe exchange rate regimes you consider to be best suited for thesmall developing countries.

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Advantages of Fixed Exchange rate 1 The importers and exporters are assured for exchange rate and can plan according as they are protected for exchange rate fluctuations 2 Foreign Investors can invest without thought of foreign exchange risk 3 Other countries with floating exchange rate might frame polices with countries with fixed interest rate ti make there domestic See Answer

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Assess the advantages and disadvantages of adoption of the Fixed versus Flexible exchange rate system. Choose...

90.2K

Verified Solution

Question

Finance

Assess the advantages and disadvantages of adoption ofthe Fixed versus Flexible exchange rate system. Choose and explainthe exchange rate regimes you consider to be best suited for thesmall developing countries.

Answer & Explanation Solved by verified expert

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