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?