International Business: Competing in the Global Marketplace
International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Chapter 11, Problem 2CDQ
Summary Introduction

Case summary:

The Country C was accused of manipulating its currency in order to increase their exports. They have pegged its currency to the Country U’s dollar at fixed exchange rate. The Country C’s currency was devalued by its government to improve the competitiveness of exports when they entered into foreign trade.

Later, the Country C has reevaluated its currency policy in the Year 2000 and decided to shift towards managed-floated system. AS per this system, the Country C’s currency was appreciated when their adopted managed-floated system so the claims on Country C were not true.

To discuss: The reasons for Country C shifted towards a managed-float system.

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