Debate the relative merits of fixed and floating exchange rate regimes.


From the perspective of an international business, what are the most


important criteria in a choice between the systems? Which system is the


more desirable for an international business?



. Imagine that Canada, the United States, and Mexico decide to adopt a


fixed exchange rate system. What would be the likely consequences of


such a system for (a) international businesses and (b) the flow of trade


and investment among the three countries?