Outline the arguments for and against a system of fixed foreign exchange rates.

With the aid of a well labelled diagram(s) and a clear reference/starting point explain the dynamics of stable and unstable foreign exchange markets and its importance.

Suppose country A’s goods become more popular with foreign consumers, and country B’s less so. How would this affect each country, assuming that they share a common currency? What are the pros or cons for each country?

Why should a savvy manager learn about foreign exchange?