Perspective of a multinational business

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Reference no: EM132899476

Question

The US Dollar, British Pound, Euro, and Japanese Yen are the largest globally-traded currencies and operate in a managed float system with each other. Most other countries currencies are either fixed to one of these currencies or float in relation to one or a combination of them. Debate the relative pros and cons of a fixed vs a floating exchange rate system.

From the perspective of a multinational business, what are the most important criteria in a choice between them? Explain your answer in a clear and concise manner.

Reference no: EM132899476

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