The figure given below depicts the demand and supply of Brazilian reals in the foreign exchange market.Assume that the market operates under a flexible exchange rate regime. Figure 22.1 
In the figure:
D1 and D2: Demand for Brazilian reals
S1 and S2: Supply of Brazilian reals
-Refer to Figure 22.1.The demand curves shown for Brazilian reals are based on:
Definitions:
Firm-specific Human Capital
Employees' knowledge, skills, and experiences that are valuable and tailored to a specific company's context.
Tacit Knowledge
Unwritten, unspoken, and hidden vast storehouse of knowledge held by practically every normal human being, based on his or her experiences.
Learned Experience
Knowledge or skills acquired through involvement in or exposure to particular activities or events.
Historical Measures
Quantitative data or statistics from the past used to guide or inform future decisions or strategies.
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