Floating and fixed systems.
- The demand for and supply of a currency in the foreign exchange market and the determination of the equilibrium foreign exchange rate.
- Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs.
- The effects of foreign exchange rate fluctuations on export and import prices and spending on imports and exports via the PED.
- The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system.
Questions and suggested solutions
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