a. Explain the concept of currency stability. Describe the effect of devaluation (a reduction in a foreign currency's value in relation to the U.S. dollar) on a host country's balance of payments and on foreign firms that operate in that country.
b. How can an international company minimize the possible adverse effects of currency instability in a foreign currency?

Question

a.	Explain the concept of currency stability. Describe the effect of devaluation (a reduction in a foreign currency's value in relation to the U.S. dollar) on a host country's balance of payments and on foreign firms that operate in that country.
b. How can an international company minimize the possible adverse effects of currency instability in a foreign currency?

Quizplus · Accepted Answer

The Answer of a.	Explain the concept of currency stability. Describe the effect of devaluation (a reduction in a foreign currency's value in relation to the U.S. dollar) on a host country's balance of payments and on foreign firms that operate in that country.
b. How can an international company minimize the possible adverse effects of currency instability in a foreign currency?

A Explain the Concept of Currency Stability