Why is a system for exchanging currencies necessary for international trade?(1 point)
Responses
To control the global money supply
To control the global money supply
To increase trade barriers
To increase trade barriers
To manage price stability and currency risk
To manage price stability and currency risk
To create a universal method for accurate currency exchange
To create a universal method for accurate currency exchange
Question 2
Because countries cannot produce all of the goods/services that it needs, they must(1 point)
Responses
Reduce the need for imports
Reduce the need for imports
Specialize and trade on a global scale
Specialize and trade on a global scale
Eliminate consumption of scarce goods.
Eliminate consumption of scarce goods.
Increase domestic production costs