Managed Floating Is Typically Undertaken by a Country to

question 168

Multiple Choice

Managed floating is typically undertaken by a country to

• A) maximize a country's net exports.
• B) attract foreign investors to invest in the country.
• C) keep inflation moderate.
• D) prevent sudden large swings in the value of a nation's currency.

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Definitions:

Comparative Advantage

The capacity of a person, business, or nation to generate a product or service with a lesser opportunity cost than that of its rivals.

Currency Rises

A scenario where the value of a particular currency increases relative to others, affecting international trade and economic dynamics.

Cultural Barrier

involves differences in cultural practices, beliefs, and values that can impede understanding, interaction, and cooperation among people from different cultural backgrounds.

Supplier Relationship

The strategic management of interactions and engagements between a business and its suppliers to optimize the value of those relationships.