Exchange control regulates international trade by controlling access to foreign currencies.

Question

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Exchange control is a regulatory mechanism implemented by governments to manage the flow of foreign currencies in and out of their countries. It involves setting rules and regulations to govern the buying, selling, and exchange of foreign currencies, as well as controlling access to those currencies through various mechanisms such as licensing, quotas, or taxes. Through these measures, exchange control affects the ability of firms and individuals to engage in international trade and financial transactions, as it limits or expands their access to foreign currencies.

Exchange Control Regulates International Trade by Controlling Access to Foreign