Explain how the gold standard worked

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1. Explain how the gold standard worked and why it led to stable exchange rates. What might be some advantages and disadvantages of returning to the gold standard?

2. Describe the relationship between purchasing power parity and the Big Mac Index.

3. What is derived demand and how does this relate to the value of one currency in terms of another?

4. What are the advantages of hedging for an MNC? How do MNCs hedge?

Reference no: EM131327672

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