"The currency exchange rate is by far the most important factor in deciding trade policy. Since the exchange rate determines the international value of the domestic currency, it directly affects the profitability of firms producing for the international market, or firms facing foreign competition."

• What issue/s in the Philippines can you cite to relate in the phrase? Why?
• What is/are the implications of this in the Economic and Socio-Political areas of the society?
• If you were a government official, what will be your policies in implementing international trade and investment?