question archive International Business Sometimes bring up one of the big disadvantages of today's floating exchange rate system from the perspective of businesses
International Business Sometimes bring up one of the big disadvantages of today's floating exchange rate system from the perspective of businesses
Subject:BusinessPrice: Bought3
International Business
Sometimes bring up one of the big disadvantages of today's floating exchange rate system from the perspective of businesses. Businesses don't like risk or unpredictable things, especially when it comes to their profits and revenues.
However, there are some powerful reasons why the old fixed exchange rate systems of the past, pegged to gold, didn't work. In the face of international crisis and economic turmoil, these fixed exchange rate systems crumbled under the weight.
What are a few of the reasons that fixed exchange rates systems don't work well in a global free trade environment?
