Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent $(60\%)$ of supplies are sent to various companies throughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.

The main competition for Duncan Multinational Corporation comes from one U$.$S$.$ firm and one Canadian firm. The U$.$S firm and Canadian firm have approximately $45\%$ market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.

a$)$ a$)$ Which two factors affecting exchange rates, has the most impact on Barbados?

b$)$ Does the most important factor influencing exchange rates on Barbados differ from those that may apply in larger economies?

The main factors that affect exchange rate are:

$$ Income levels of nationals

$$ Inflation rates within the country

$$ Interest rates

$$ Government policies, such as those relating to national debt and barriers to trade.