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Which of the following is a disadvantage of a fixed exchange rate system? Firms can engage in international trade without concern about exchange rate movements

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Which of the following is a disadvantage of a fixed exchange rate system? Firms can engage in international trade without concern about exchange rate movements There is no risk of an exchange rate change Investors can invest funds in foreign countries without concern that the foreign currency may depreciate over time A fixed exchange rate may render the country more vulnerable to economic conditions in other countries. Firms can engage in direct foreign investment without concern about exchange rate movements

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