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QUESTION 3.2 Critically evaluate the role of exchange rate systems in influencing FDI and trade levels. There are various types of exchange rate systems such

QUESTION 3.2

Critically evaluate the role of exchange rate systems in influencing FDI and trade levels.

There are various types of exchange rate systems such as the fixed exchange rate and the floating exchange rate. Explain how the types of exchange rate systems can impact trade and FDI levels by highlighting the potential advantages/disadvantages of the systems

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