Which of the Following Is a Disadvantage of Using a Rigid

question 86

Multiple Choice

Which of the following is a disadvantage of using a rigid policy of fixed exchange rates?

• A) It is likely to create high unemployment in some cases.
• B) It will lead to inflationary economies across the world.
• C) It is likely to bring about trade wars between nations.
• D) It will instigate competitive devaluations and intense competition.

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Definitions:

Distributive Negotiation

Focuses on positions staked out or declared by the parties involved, each of whom is trying to claim certain portions of the available pie.

Win-lose Outcome

A competitive resolution to a conflict or negotiation where one party's gain is directly proportional to the other's loss.

Hard Approach

A management strategy focusing on measurable outcomes, financial targets, and control mechanisms.

Workflow Interdependence

The degree to which tasks and processes in an organization rely on each other, requiring coordinated effort among workers.