A Guest Post by FXTM – Different Currency Regimes
When companies buy or sell goods or services, they need to know the price that they will receive or how much they need to pay. Often, a small change in price will make the difference between profit and loss. However, when trade crosses national boundaries this can be a significant problem. Fluctuations in exchange rates due to economic differences or changing monetary policy introduce uncertainties into international trade. This acts as a brake on the free flow of goods and services between countries.
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