Question

Why is system of currency exchange necessary for international trade?

Answer 1

The answer would be D.

Answer 2

Answer: D. There must be a way to pay for goods purchased from countries with different types of currencies due to Nationalism.

The reason why we need a system of currency exchange in order to conduct international trade is because different countries use different types of currency. They do so because national sovereignty allows each nation to establish its own currency. However, we need a system to pay for goods that are purchased from other countries. This is why the currency exchange system allows us to conduct international trade.