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?
