How would weaker conditions affect the value of its, Financial Management

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How would weaker conditions affect the value of its

1. Impact of crises. Why do you think most crises in countries cause the local currency to weaken abruptly? Is it because of trade or capital flows?

2. How do you think the weaker economic conditions would affect trade flows in a developing country? How would weaker conditions affect the value of its currency (holding other factors constant)? How do you think interest rates would be?

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