Ways to manage exchange rates

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4 Terms

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Ways to manage exchange rates

interest rate, foreign currency transaction

2
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Infant industries

Industries which are too young to benefit from economies of scale as they are producing at a low level of output

3
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Competitive depreciation

When a country depreciates their own currency to keep their exports cheap and competitive

4
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Currency war

Country depreciate their exchange rates to make their exports more competitive than other countries’