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alekssr [168]
3 years ago
5

There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate

regime. b) Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. c) Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Business
1 answer:
atroni [7]3 years ago
8 0

Answer:

a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.

b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile

c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.

Explanation:

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The process that EA Sports carried out with the cover of the Madden video game was Perception Marketing.

<h3>What is perception marketing?</h3>

Perception marketing is an economic term that refers to the set of marketing strategies focused on the consumer's perception of a specific product.

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The demand curve for a monopolistically competitive firm is downward sloping because there is a full or advanced degree of the powerfulness in the market.

<h3>What is the shape of demand curve of the monopolistically competitive firm?</h3>

A downward sloping demand curve characterizes a monopolistically competitive corporation because there is a lot of power in the market.

This curve signaled that the business firm has extraordinary market power. As each firm offers a unique product, market dominance is derived from product differentiation.

Therefore, the demand curve of monopolistically competitive market is downward sloping.

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