Explain How a Floating Exchange Rate Can Cause Problems for Countries

question 79

Essay

Explain how a floating exchange rate can cause problems for countries that have a substantial number of foreign loans denominated in US dollars.How might a fixed exchange rate pegged to the US dollar help the country avoid these problems?
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Definitions:

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing objectives and increase its market presence.

Market Penetration Strategy

A growth strategy where a business focuses on selling existing products within existing markets to gain a higher market share.

New Markets

These refer to unexplored or less saturated areas or sectors where businesses can expand their presence to increase sales, reach new customers, or introduce innovations.

Same Market

Refers to a situation where companies or products target the same customer segment or geographic area.