International exchange rates have little impact on domestic economies.

Question

Quizplus · Accepted Answer

International exchange rates can have a significant impact on domestic economies. Fluctuations in exchange rates can affect the cost of imports and exports, inflation, trade flows, investment, and the competitiveness of domestic industries. Currency movements can also affect the profitability of companies with global operations and influence the decisions of foreign investors seeking to invest in domestic markets.

International Exchange Rates Have Little Impact on Domestic Economies