Why do small countries that trade a lot generally prefer to fix their exchange rates?

Question

Quizplus · Accepted Answer

Small countries that trade a lot prefer fixed exchange rates because it provides more price stability and reduces risks for exports. This is important because small countries have less power to control their own flexible exchange rates and are more vulnerable to external shocks, such as sudden changes in trade flows. Fixed exchange rates also make it easier for small countries to plan their economic policies and attract foreign investment.

Why Do Small Countries That Trade a Lot Generally Prefer