Just go through the link below.
Mohamed Ahmed Sarhan Al-Ahwal - Yemen
http://books.Google.com.my/books?id=DhXcjkxjLvoC&pg=RA1-PA177&lpg=RA1-PA177&dq=disadvantage+of+a+freely+floating&source=bl&ots=zgSbW7KTJd&sig=nOmLH4WRSXrhFU9qji3D6ssiRi8&hl=en&ei=n2rHSrvtE4eUkAWS_Mw5&sa=X&oi=book_result&ct=result&resnum=3#v=onepage&q=disadvantage%20of%20a%20freely%20floating&f=false
floating
The advantages of floating exchange rates are: Flexibility and automatic adjustment, Flexibility in determining interest rates, Greater insulation from other countriesâ?? economic problems, Lower foreign exchange reserves.
Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.
fixed and floating exchange rates
Foreign exchange rates are currency exchange value of other countries.
In a floating exchange rate system, the rates keep on changing according to the economic conditions. The rates of the currencies are never fixed.
floating
They tried to immediately find a new set of exchange rates after Bretton Woods failed- it didn't relieve it much. They used a free-floating regime which is a very mixed bag of floating and fixed exchange rates.
The advantages of floating exchange rates are: Flexibility and automatic adjustment, Flexibility in determining interest rates, Greater insulation from other countriesâ?? economic problems, Lower foreign exchange reserves.
Ronald MacDonald has written: 'Gambier's Advocate' 'The sea maid' 'The macroeconomic impact of government budget deficits' 'Floating exchange rates' -- subject(s): Foreign exchange 'International parity conditions' 'Our experience with floating exchange rates' 'The sword of the King' 'Cointegration and the consumption function' 'From a northern window' -- subject(s): Scottish Authors, Biography 'International Money and Finance' 'What do we really know about real exchange rates?' -- subject(s): Foreign exchange rates 'A Human Trinity'
Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.
Amartya Lahiri has written: 'Delaying the inevitable' -- subject(s): Balance of payments, Interest rates, Monetary policy 'Segmented asset markets and optimal exchange rate regimes' -- subject(s): Econometric models, Foreign exchange rates, Prices 'Living with the fear of floating' -- subject(s): Econometric models, Foreign exchange rates, Interest rates, Monetary policy
fixed and floating exchange rates
Since NZ has a floating currency, the best place for this question is in the exchange rates in the newspaper, or an enquiry at a bank.
Foreign exchange rates are currency exchange value of other countries.
If you are dealing with overseas currency it is necessary to know exchange rates. The exchange rates vary from day to day. exchange rates compare how much a certain country's currency is worth against another countries.
One of the disadvantages of the FDI in connection with export promotion is that it is affected with other conditions like the deterioration of the exchange rates. The other disadvantage is that the cost of exporting the perishable goods is high.