EXPLAIN WHAT FIXED AND FLOATING EXCHANGE RATES ARE. WHAT ARE THE COSTS AND BENEFITS OF A FIXED AND FLOATING EXCHANGE RATE? WITH THIS IN MIND DO INTERNATIONAL BUSINESSES PREFER A FIXED OR FLOATING EXCHANGE RATE SYSTEM?

Explain what fixed and floating exchange rates are. What are the costs and benefits of a fixed and floating exchange rate? With this in mind do international businesses prefer a fixed or floating exchange rate system?

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