What are the advantages and disadvantages of free float, Cost Accounting

Assignment Help:

Q. What are the advantages and disadvantages of free float?

Advantages: It is one of the most suitable ER regimes for transitional countries that experience external shocks like,

a. Terms of trade deterioration

b. Loss of competitiveness, real appreciation of the national currency c. International trade volume decline

d. Weak regional integration

e. Lack of mature and fully functional financial markets f. Difficulty of determining the equilibrium.

Disadvantages: a. High inflation rate. b. Loss of the confidence in national currency c. Loss of traditional markets for exports. d. National currency devaluation.


Related Discussions:- What are the advantages and disadvantages of free float

Acct 212, Cost Flow Relationships The following information is available f...

Cost Flow Relationships The following information is available for the first month of operations of Url Inc., a manufacturer of art and craft items: Sales $886,900 Gross profit

Example of lifo, Example of LIFO, FIFO and Weighted Average Method Su...

Example of LIFO, FIFO and Weighted Average Method Suppose the following purchases were made in ABC Ltd as like: Date of purchase     Units purchased              Price/uni

Determine growth rate, (a)  The value of a share of Rio National Equity on...

(a)  The value of a share of Rio National Equity on 31 December 2002, using the Gordon growth model and the capital asset pricing model, can be determined as follows. Required

Distribution and selling cost budget, Distribution and Selling Cost Budget ...

Distribution and Selling Cost Budget This is the forecast of all costs incurred in distributing and selling the company's product throughout the budget period. This is closel

Job costing, Job Costing This is a costing method that is applied whe...

Job Costing This is a costing method that is applied when a job or cost unit is relatively of small size, is undertaken to fit the customer's specifications and is of compara

Which of the following are relevant in choosing, A company is considering t...

A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $240,000 240,000 Variable costs 120,000 140,000 Fixed costs 70,000 70,000 Which of the fol

EXPECTED CASH COLLECTIONS, WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PAT...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Relationship among variances, Relationship among variances We cannot o...

Relationship among variances We cannot over emphasize the central aim of variance analysis as outlined in the above paragraphs:  that is to assign responsibility for a particu

Find the total landed cost, What conclusion can you draw when comparing the...

What conclusion can you draw when comparing the total landed or delivered cost to the original purchase cost? What does this suggest about the importance of supply chain managem

Storage and issue of material, Storage and Issue of Material A number ...

Storage and Issue of Material A number of questions are relevant in this control of materials throughout storage and question of materials. These are as: a) Stock control r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd