Determining exchange rate systems

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"There are flexible (floating) and fixed exchange-rate systems that nations use to correct imbalances in the balance of payments. When a nation has a payment deficit foreign exchange rates will increase, thus making foreign goods and services more expensive and decreasing imports. These events will make a nation's goods and services less expensive for foreigners to buy, thus increasing exports."

What are the implications for a business given the above statement?

Reference no: EM13117039

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