Requisite variety is a term used to state that the more a system (machine or living being) broadens its knowledge of diverse but selected information, the greater its control and power to make assertive and proactive decisions in any given situation.
Some examples of this are: The more a person has information about their talents and skills and about themselves, the more likely they are to choose the most appropriate profession or niche to work for. Also, when a leader carefully observes the complexity of a situation, he can get a lot of relevant information that will be very important for him to take appropriate action.
It serves as the basic link between the local and the overseas market for various goods, services and financial assets. Using the exchange rate, we are able to compare prices of goods, services, and assets quoted in different currencies.
