Adopting a fixed exchange rate system


1) Describe the factors responsible for the slide of the dollar in the early part of the twenty-first century. How has the Euro fared against the dollar?

2) Assume that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system. What would be the probable effects of such a system for international businesses and the flow of trade and investment between the three countries?

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Business Management: Adopting a fixed exchange rate system
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