Changes in the value of a nation’s currency affect the nation’s net exports, and thus GDP. How might this make a large country, like the U.S., more willing to adopt a flexible exchange rate regime than a small country, like Belgium?
Rubric
Criteria | Not Evident | Developing | Proficient | Distinguished | Weight |
Why do large countries, like the U.S., typically have a lower portion of their GDP as exports and imports, than a small country like Belgium? | 4 | ||||
How does the size of a nation’s trade sector affect the stability of its GDP? | 3 | ||||
How do exchange rate fluctuations affect a nation’s GDP? | 4 | ||||
Why might a large country be more willing to adopt a flexible exchange rate than a small country would? | 6 | ||||
Write up your analysis using correct language, explaining all your work | 3 | ||||
Total:20 |
Candela Citations
CC licensed content, Original
- Assignment: Exchange Rates and International Finance. Authored by: Steven Greenlaw and Lumen Learning. Provided by: Lumen Learning. License: CC BY: Attribution