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Assess the advantages and disadvantages of adoption of the Fixed versus Flexible exchange rate system. Choose...

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Assess the advantages and disadvantages of adoption ofthe Fixed versus Flexible exchange rate system. Choose and explainthe exchange rate regimes you consider to be best suited for thesmall developing countries.

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Advantages of Fixed Exchange rate 1 The importers and exporters are assured for exchange rate and can plan according as they are protected for exchange rate fluctuations 2 Foreign Investors can invest without thought of foreign exchange risk 3 Other countries with floating exchange rate might frame polices with countries with fixed interest rate ti make there domestic    See Answer
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Assess the advantages and disadvantages of adoption ofthe Fixed versus Flexible exchange rate system. Choose and explainthe exchange rate regimes you consider to be best suited for thesmall developing countries.

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