For small, open economies that export and import a large volume of goods and services, a fixed exchange rate often make sense. Why does it make sense? And at what cost to the country?

How can foreign exchange rates impact a business positively? How can foreign exchange rates have a negative impact on a business? In regards to a global insurance company, how can exchange rates affect the day to day running of their business?

How do international investment activities affect exchange rates?

Visit one of the many websites that lists all of the current exchange rates between different currencies around the world. Try a financial newspaper’s site such as ft.com (follow the links to “Market Data,” and then “Currencies”), or try websites devoted to foreign exchange market data such as oanda.com or xe.com (dig down; don’t just look at the major currency tables). According to these lists, how many distinct currencies exist around the world today? Are some currencies used in more than one country?