September 2023 Government Impact on Exchange Rates Please respond to the following 1 From the first case

2024 Discussion 4 Due 1/28/2018 At 9pm EST Assignment Help

Government Impact on Exchange Rates Please respond to the following 1 From the first case 2023

“Government Impact on Exchange Rates” Please respond to the following: 1.) From the first case study, imagine a situation where the Thai government has decided to peg the Thai Baht to the U.S. dollar. Predict the major effects that such a peg could have on the U.S.’s level of inflation and the level of exports or imports to and from Thailand. Determine the fundamental manner in which a fixed exchange rate affects companies such as Blades. 2.) From the second case study, analyze the major advantages and disadvantages associated with a floating exchange rate system in Thailand. Determine the central manner in which a floating exchange rate system affects companies such as Blades. Provide a rationale for your response. 3.) Why do countries peg their currencies to the dollar class?

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