Explain mutual exchange rate to float, International Economics

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Q. Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float?

Answer: Even though these regions trade amid each other the extent of that trade is modest compared with regional GNPs as well as interregional labour mobility is low.


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Q. Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float? Answer: Even though these regions trade amid each other

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