Discuss the impact of floating exchange rates

Reference no: EM132136676

Question: Please answer both part.(100-120 word):

a) Discuss the impact of floating exchange rates on the profitability of foreign operations by US companies.

b) President Trump has threatened to impose 25+% new tariffs on imports from China and Mexico due to the large trade deficits we run with those countries.

Will the imposition of such tariffs reduce our total trade deficit by generating more US production?

Reference no: EM132136676

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