Answered

14. How do different currencies affect free trade agreements?

A. They make nations more likely to trade with each other because of exchange rates.
B. They have no effect on free trade agreements.
C. They help free trade agreements because a variety of currencies is good for trade.
D. Different currencies put nations on unequal grounds because their currencies are not equivalent.



Answer :

GinnyAnswer

Final answer:

Exchange rates impact free trade agreements by affecting import and export prices, leading governments to consider fixing exchange rates for stability.


Explanation:

Exchange rates play a significant role in free trade agreements. Different currencies can put nations at an advantage or disadvantage in trade, impacting import and export prices. Governments may opt to fix exchange rates to minimize disruptions in trade flows and ensure stability.


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