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Required: (a) Explain why a government might wish to devalue its currency, and discuss those factors that will determine the success of a such a
Required: (a) Explain why a government might wish to devalue its currency, and discuss those factors that will determine the success of a such a policy. Justify your answer with relevant literature. (10 marks) (b) Discuss whether a fixed or a floating exchange rate would be more beneficial for businesses. (7 marks) (c) What are the measures could the Malaysian firms take to minimize the risks associated with a fluctuating exchange rate? Justify your answer with relevant literature. (8 marks)
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