How cuurency create problem for in interntional trade?
Answers
Answer:
The exchange rate has an effect on the trade surplus (or deficit), which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.
Currency is a medium of exchange for goods and services. In short, it's money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment.
Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services.
In the 21st century, a new form of currency has entered the vocabulary, the virtual currency. Virtual currencies such as bitcoins have no physical existence or government backing and are traded and stored in electronic form.
Currency is a medium of exchange for goods and services. In short, it's money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment.
Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services.
In the 21st century, a new form of currency has entered the vocabulary, the virtual currency. Virtual currencies such as bitcoins have no physical existence or government backing and are traded and stored in electronic form.
About National Currencies
According to WorldAtlas.com, 180 national currencies recognized by the United Nations are currently in circulation. Another 66 countries either use the U.S. dollar or peg their currencies directly to the dollar.
Most countries issue their own currencies. For example, Switzerland's official currency is the Swiss franc, and Japan's is the yen. An exception is the euro, which has been adopted by most countries that are members of the European Union.